(Bloomberg) — Seaspan Corp, a ship-leasing unit of Tiger Group Investments, may order as many as 15 more container ships over the next year to benefit from the lowest vessel prices in more than four years.
Seaspan is in talks with two to three container lines to lease the ships it plans to purchase, Chief Executive Officer Gerry Wang said in an interview today. The company had already ordered another 15 vessels in the last three weeks, he said.
Ship prices have fallen because of overcapacity, industrywide losses and tighter financing caused by European banks paring lending. The price of a vessel that can carry as many as 13,500 20-foot containers was worth $107 million last month, according to Clarkson Plc, the world’s biggest shipbroker. That’s the lowest price since it started compiling the data in June 2008.
“We are happy with the price level right now,” Wang said in Hong Kong, where the company is based. “We hope to capitalize on the situation. I have no reason to say the market will go down further.”
Seaspan rose 31 cents, or 1.7 percent, to $18.81 in New York trading yesterday, the highest closing price since March 16. The stock gained 17 percent last year.
The new vessels that the company plans to order will be able to carry at least 10,000 20-foot-boxes each, he said. Seaspan has agreed to charter five 14,000-box vessels to Taiwan’s Yang Ming Marine Transport Corp., Wang said. The ships, to be built by Hyundai Heavy Industries Co., will be delivered from 2015.
Biggest Vessel
Yang Ming is following other lines in ordering more fuel- efficient vessels as A.P. Moeller-Maersk A/S will take delivery in June the world’s biggest container vessel that will consume about 35 percent less fuel per box than those currently in service.
“There’s always demand for modern ships and for fuel- efficient ships,” Wang said. “Operators are getting more confident, and I will see more older ships being phased out.”
The price of 380 centistoke bunker fuel used by ships has jumped about 13 percent in two years, according to data compiled by Bloomberg.
The average age of Seaspan fleet is about four years old, compared with the industry’s average of 11-years, Wang said. The company has 69 ships on its fleet, according to its website.
Trade between Asia and the U.S. was stronger in last 12 months as China continues to expand and the U.S. is on a “solid” path of recovery, Wang said.
China Growth
Chinese industrial companies’ profit rose 17.3 percent in December, adding to signs the world’s second-largest economy’s rebound is gaining momentum. Industrial profits may rise by an average 30 percent this year as China recovers from a seven- quarter slowdown, businesses start restocking and export demand improves, Standard Chartered Plc forecasts.
Seaspan’s parent Tiger, Carlyle Group LP and other investors formed a ship fund in 2011 with the goal of buying $5 billion in assets as container lines add new vessels to counter rising fuel costs. Tiger also owns bulk ships, chemical carriers and heavy-lift vessel through units including Seaspan and Greathorse Shipping.
– Jasmine Wang and Kyunghee Park, Copyright 2013 Bloomberg.
China's retaliatory tariffs on the United States may cause U.S. oil exports to decline in 2025 for the first time since the COVID-19 pandemic, after growth plateaued last year.
A. P. Moller-Maersk A/S, a bellwether for world trade, forecast growth in the global container market as it sees consumer demand defying an intensifying trade war.
Almost every day since the expansion of Canada’s Trans Mountain pipeline was completed in May, a tanker laden with oil sands crude shipped through the line has passed under Vancouver’s Lions Gate Bridge en route to refineries around the Pacific.
February 5, 2025
Total Views: 2262
Sign Up Now for gCaptain Daily
We’ve got your daily industry news related to the global maritime and offshore industries.
JOIN OUR CREW
Maritime and offshore news trusted by our 109,006 members delivered daily straight to your inbox.
Your Gateway to the Maritime World!
Essential news coupled with the finest maritime content sourced from across the globe.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.