New York-listed containership owner and lessor Global Ship Lease has expanded its fleet in a $917m deal for 10 mid-size, ultra-high-reefer, wide-beam containerships.
The Athens-based company said it has signed individual newbuilding contracts for ten ships, subject to certain conditions precedent being met, with deliveries scheduled to take place between the fourth quarter of 2028 and the first quarter of 2030.
Upon delivery from the yards, the newbuilds are contracted on multi-year charters, with a TEU-weighted average term of 6.7 years and at rates expected to generate aggregate adjusted EBITDA of approximately $665m over their respective charter terms.
Executive chairman George Youroukos said the next generation represented by these newbuilds reflects the evolving requirements of the company’s liner customers.
“We are pleased to have agreed attractive terms for these best-in-class vessels, which we expect to be the workhorses of global container shipping for many years to come, ensuring that our existing “cash cows” are successfully replaced as they begin to age out,” he said.
He continued: “Alongside our continuing efforts to renew our fleet with well-specified, on-the-water vessels, we have worked hard to ensure that the next generation represented by these newbuilds reflects the evolving needs of our liner customers for maximum flexibility to adapt to changing trade patterns, as well as highly efficient operation.”
The company said the existing forward charter cover stands at approximately $2.1bn spread over 2.6 years.
“Consistent with our long-held strategy of mitigating downside risk while unlocking attractive upside potential, we are pleased to have fixed all 10 of the newbuilds on multi-year charters commencing upon delivery from the yards. Moving on these compelling newbuilding opportunities is facilitated both by our strong balance sheet and our stable platform with existing forward charter cover of $2.1 billion spread over 2.6 years,” the executive chairman noted.
Global Ship Lease controls a fleet of 71 vessels with an average age weighted by TEU capacity of 18.2 years. 41 ships are wide-beam post-panamax.
