Taiwan’s Yang Ming line is about to sign a long-term charter agreement for a series of 14,100teu ships, ending protracted negotiations with several potential partners before settling on Seaspan.
Lawyers are finalising contract details, but the deal is very close to being completed, with Yang Ming expected to secure some very attractive charter rates as newbuilding prices continue to decline.
“Nothing is concluded yet. But I expect the deal will be finalised within the first two months of this year, maybe in late January at the earliest,” said a Yang Ming official.
The Taiwan-based line, which has been talking about a major fleet upgrade for some time, will charter at least five 14,100teu ships from Seaspan, with options for an additional five.
Yang Ming is ranked the 16th largest boxship player worldwide, according to Lloyd’s List Intelligence, with a fleet of 424,000teu. The largest ships it currently operates are 8,200teu. Seaspan will place the newbuilding order with South Korea’s Hyundai Heavy Industries for deliveries from late 2015.
With very few big newbuilding orders being placed because of uncertain market conditions and tight finance, Seaspan is said to have fought off stiff competition to win the Yang Ming project, both from established owners and from new names.
Seaspan was chosen from a shortlist of three, according to brokers. The New York-listed owner is thought to have obtained a very low price from the shipyard that will be reflected in the charter rate that Yang Ming has negotiated, and which will be considerably less than Evergreen will be paying on its 13,800teu newbuildings.
Those ships, ordered on behalf of Evergreen a few months ago, are thought to be costing around US$114 million apiece. That compares with a peak of around $170 million in 2008 before the banking crisis brought newbuilding activity to a virtual standstill.
Yang Ming has made no secret of its wish to order ultra-large box ships to join the premier league of global container lines. At one stage, the carrier had been talking about 16,000teu ships, but revealed a few months ago that it had board approval to go ahead with an investment in five 14,000teu ships through a long-term charter arrangement.
Ships of that capacity will strengthen its position within the CKYH alliance of major Asian container lines.
Seaspan chief executive Gerry Wang has been at the forefront of efforts to persuade shipyards to lower their prices while also producing more innovative designs.
He has also emphasised the importance of access to capital, with Seaspan establishing close links with Chinese lenders.
“Financing is our bread and butter. We cannot wait until the market has recovered and everyone can borrow money. Then you are too late. We need to position ourselves to do things others cannot do,” he said.
Seaspan’s managed fleet of owned and third-party vessels comprises 76 containerships (475,000teu), including seven on order. The largest until now were six 13,100teu vessels on charter to Cosco Container Lines for 12 years.
Lawyers are finalising contract details, but the deal is very close to being completed, with Yang Ming expected to secure some very attractive charter rates as newbuilding prices continue to decline.
“Nothing is concluded yet. But I expect the deal will be finalised within the first two months of this year, maybe in late January at the earliest,” said a Yang Ming official.
The Taiwan-based line, which has been talking about a major fleet upgrade for some time, will charter at least five 14,100teu ships from Seaspan, with options for an additional five.
Yang Ming is ranked the 16th largest boxship player worldwide, according to Lloyd’s List Intelligence, with a fleet of 424,000teu. The largest ships it currently operates are 8,200teu. Seaspan will place the newbuilding order with South Korea’s Hyundai Heavy Industries for deliveries from late 2015.
With very few big newbuilding orders being placed because of uncertain market conditions and tight finance, Seaspan is said to have fought off stiff competition to win the Yang Ming project, both from established owners and from new names.
Seaspan was chosen from a shortlist of three, according to brokers. The New York-listed owner is thought to have obtained a very low price from the shipyard that will be reflected in the charter rate that Yang Ming has negotiated, and which will be considerably less than Evergreen will be paying on its 13,800teu newbuildings.
Those ships, ordered on behalf of Evergreen a few months ago, are thought to be costing around US$114 million apiece. That compares with a peak of around $170 million in 2008 before the banking crisis brought newbuilding activity to a virtual standstill.
Yang Ming has made no secret of its wish to order ultra-large box ships to join the premier league of global container lines. At one stage, the carrier had been talking about 16,000teu ships, but revealed a few months ago that it had board approval to go ahead with an investment in five 14,000teu ships through a long-term charter arrangement.
Ships of that capacity will strengthen its position within the CKYH alliance of major Asian container lines.
Seaspan chief executive Gerry Wang has been at the forefront of efforts to persuade shipyards to lower their prices while also producing more innovative designs.
He has also emphasised the importance of access to capital, with Seaspan establishing close links with Chinese lenders.
“Financing is our bread and butter. We cannot wait until the market has recovered and everyone can borrow money. Then you are too late. We need to position ourselves to do things others cannot do,” he said.
Seaspan’s managed fleet of owned and third-party vessels comprises 76 containerships (475,000teu), including seven on order. The largest until now were six 13,100teu vessels on charter to Cosco Container Lines for 12 years.
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