Seaspan Corporation, a Subsidiary of Atlas Corp (NYSE: ATCO), Announces Forward Fixing Contracts for 17 Containerships with COSCO Shipping Lines

Overseeing and managing every aspect of the shipping process from ship to shore can sometimes be traumatizing. This explains why Seaspan Corporation engages more than 5200 employees. Through its wholly-owned subsidiary, Atlas Corp (NYSE: ATCO), the company offers the world’s major shipping lines. It is on as being an independent leader, owner, operator, and manager of containerships. And as a global operator, Seaspan also avails long-term leases on large, modern containerships. 

Seemingly, the company has today announced an extension of current lease terms for 17 containerships with COSCO SHIPPING Lines through forwarding fixed contracts. They represent about 117,700 TEU, and the plan was to conclude the charters with COSCO at least two vessels in 2021, 13 and two vessels in 2022 and 2023, respectively. However, this may not be the case. Thanks to a three-year term extension, which begins at the end of their current charter period. 

The Mutually Beneficial Approach is Strategic in Meeting Customers’ Demands 

There was a need to extend the fixed forward contracts, according to President and CEO of Seaspan, Bing Chen. The idea was to formalize a long-term partnership and commitment with COSCO, given that Seaspan has a minimal number of vessel redeliveries in 2022 and 2023. The approach would benefit the two companies and, more importantly, meet the rising customer demands. 

As of March 31, 2021, Seaspan had 127 containerships, equivalent to 1,073,200 TEU. In the month that would follow, the company announced the delivery of two second-hand vessels pushing the fleet number to 129 and 1,090,200 TEU. Meanwhile, 39 vessels are under construction, plus there is an agreement to purchase two additional second-hand vessels. 

New Agreements for Two 12,000 TEU Containership Newbuilds

Agreements entered into Seaspan, and a significant shipyard is expected to bring forth two 12,000 TEU containership newbuilds. The anticipation is to have them delivered in Q4 of 2022. Acknowledging the agreement, Chen said, “We are very pleased to continue facilitating our customer’s growth by providing the most efficient newbuilds….”

Meanwhile, through its two companies, Seaspan Corporation and APR Energy, Atlas says its focus is to deploy capital to create sustainable shareholder value.  

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