Seaspan Corporation has forward fixed contracts to extend the current lease terms for 17 containerships with Cosco Shipping.

The vessels charters with Cosco were set to end for two vessels in 2021, 13 vessels in 2022, and two vessels in 2023. All have now been extended for a three-year term from the end of their current charter period.

Seaspan says the new contracts will generate approximately $700m of gross contracted cash flow.

Bing Chen, chairman, president and CEO of Seaspan, commented: “The forward fixing of these 17 vessels is another milestone of mutual commitment to our long-term partnership throughout the market cycles. The immediate result of forward fixing is that we have a very limited number of vessel redeliveries in 2022 and 2023. I would like to thank both teams for their seamless teamwork in creating a win-win solution. COSCO will continue to enjoy Seaspan’s excellent operational quality, scale, and flexibility, while, at the same time, allowing Seaspan to forward fix material tonnage based on current market conditions to further strengthen our long-term charter business model. The mutually beneficial approach implemented to meet COSCO and other strategic customers’ strong demand has contributed to the stabilization of the market and facilitated our customers’ competitiveness and successes in serving their end customers.”

Seaspan’s fleet currently sits at 127 vessels with a total capacity of 1.073m teu, with an additional two secondhand vessels set to deliver and 39 newbuilds on order.