Seaspan and CSSC Complete Big Order Chinese-Financed in Local Currency

China shipbuilding — Seaspan and CSSC are depening their relationship with a big new order in Chinese currency and China-financed (CSSC)

Seaspan became the latest to jump into containership newbuilding, placing another big order with China State Shipbuilding. In addition to the size of the order, estimated by analysts at more than $1.2 billion, it is drawing attention as it is Chinese-financed and will be denominated in the Chinese currency, renminbi, extending China’s efforts to break free from linking newbuilds to the U.S. financial markets.

As the largest independent containership leasing company, Seaspan rivals the largest carriers. It currently reports a capacity for its owned fleet of approximately 2.4 million TEU, which rivals Hapag-Lloyd as the first largest carrier by capacity. However, Seaspan’s fleet operates mostly on long-term charters to the major carriers. The company reports a fleet of 227 vessels (fully delivered, including current construction orders) and a 99 percent utilization rate.

The new order is for a dozen 9,000 TEU ships to be financed by ICBC Financial Leasing. During the signing ceremony on August 15 at CSSC’s Hudong-Zhonghau Shipbuilding subsidiary, they highlighted the deal as a “prime example of the integrated development of “Made in China + China Financed,” which is a not-so-veiled response to the U.S.’s efforts to impose port fees on Chinese-built or operated vessels. CSSC hailed the order as “creating a new model for international ship trading.”

There was no indication of which of Seaspan’s major customers will be the operator of the new ships, which are due for delivery by 2029. They said the ships will be conventionally fueled but have a mature linear design, an efficient powertrain, and a refined layout to maximize cargo space.

Seaspan has grown rapidly and continues its pace since being taken private in an investor-led deal with management and participation by Ocean Shipping Network (ONE). In May, it was linked to a letter of intent for six 11,400 TEU vessels for COASCO. It is also reported to be building six methanol-ready 8,300 TEU vessels for COSCO.