News / Seaspan orders six more dual-fuel box ships and will pay in Chinese yuan

Canadian tonnage provider Seaspan has inked the first Chinese yuan-denominated newbuilding contract, for six 13,600 teu LNG dual-fuelled ships at Hudong-Zhonghua Shipbuilding for delivery in 2028, a deal reportedly worth around CNY6.39bn ($900m).

Reportedly financed by ICBC Financial Leasing (the Industrial and Commercial Bank of China’s leasing unit), the yuan-denomination of the newbuilding contract is part of the Chinese government’s efforts to internationalise the currency in conjunction with the Belt and Road scheme.

At the signing ceremony on Friday were Seaspan chairman Bing Chen, ICBC Financial Leasing chairman Zhang Zhenhua and Hudong-Zhonghua chairman Chen Jianliang.

It is not known which liner operator will back the long-term charters for the ships. Seaspan was said to be in discussions with ONE, but those negotiations have reportedly stopped. Other liner clients of Seaspan include MSC, CMA CGM and Zim.

Mr Chen said the newbuildings would be built according to Hudong-Zhonghua’s proprietary designs and be scrubber-fitted, with 2,000 reefer slots.

He said: “Internationalising the yuan will strengthen cooperation between China and countries participating in the Belt and Road scheme. We will heed our government’s call to encourage contract pricing in yuan, as it will also help our shipyard to reduce risks from foreign exchange conversions, and enable our customers to manage their financing costs.”

Seaspan now has 29 box ships on order, ranging from 7,000-16,000 teu, all being constructed in Chinese shipyards. Its fuelling selection for the latest newbuilds follows a re-emergence of LNG as a fuel of choice among liner operators apparently concerned that insufficient green methanol is being produced.

Last week, Alphaliner reported that 41% of the current global box ship orderbook would be LNG dual-fuelled, compared with 28% to be powered by methanol.