Seaspan Feeds Boxship Building Boom Ordering Six More Vessels
The building boom for containerships is continuing with the orderbook adding yet six more large vessels to be built in China for Seaspan. The Canada-based owner-lessor of vessels is maintaining its order pace even as it takes delivery of new vessels that operate under long-term charters with major carriers.
China State Shipbuilding Corporation (CSSC) is reporting that its Hudong-Zhonghua subsidiary signed the latest order on Friday, October 18 to build six 13,600 TERU vessels for Seaspan. Due for delivery between 2026 and 2028, they will be conventionally fueled but fitted with scrubbers and prepared for green fuel conversion. The ships will be 1,102 feet (336 meters) in length with a maximum capacity of 14,132 TEU including 2,000 reefer slots.
Possibly to combat the rising prices of vessels, Hudong-Zhonghau reports this is the first larger order and one of only a few that is being denominated in the Chinese RMB currency. No order value was reported but Seaspan will settle it in RMB making it one of the few international orders using Chinese currency for payment. For Seaspan it should help to reduce financing costs and the exchange risks for both the owner and shipyard. The Chinese are highlighting it as they seek to further expand their shipbuilding dominance and internationalize the RMB.
Princes for newbuilds are up dramatically in the past few years according to a new report from UK-based Clarksons Research. They wrote in the report that prices are up more than 50 percent over the past four years in part due to the building boom, inflation, larger vessels, and new technologies. Prices they reported are at record highs not seen in more than 15 years. They expect the newbuilding market to remain strong.
The containership segment shows continued strength. Alphaliner sets the current newbuild orders at a record pace this year with currently over 260 vessels on order. They report the sector has over 3 million TEU on order. Earlier this month, Alphaliner highlighted that the TEU capacity orders were at an all-time high.
Hudong-Zhonghua reports this is the third batch of 15 large containership orders it has taken on this year and expands the relationship with Seaspan which has ordered more than 20 containerships from CSSC since 2021. Hudong-Zhonghua has received more than 100 orders for large and ultra-larger containerships highlights CSSC.
Seaspan currently has a fleet of more than 170 vessels according to its filings as of June 2024. The company took delivery of 18 new vessels in the first half of 2024 yet its orders rose from 40 as of December 31, 2023, to 41 as of June 30, 2024. In June 2024, Seaspan ordered a total of 27 containerships with a capacity ranging between 9,000 and 17,000 TEU it reported in a Securities Exchange Commission filing. Those orders are due between 2027 and 2028.
Carlyle Ends Bid to Acquire German Naval Shipbuilder TKMS from Thyssenkrupp
American private investment firm Carlyle Group has ended discussions to purchase a controlling stake in German naval shipbuilder Thyssenkrupp Marine Services (TKMS) six months after starting a due diligence review. The shipbuilder’s parent company Thyssenkrupp confirmed the development after it was first reported by Reuters and widely covered in the financial media.
The proposed sale is part of a larger plan to bolster the beleaguered German industrial giant which has also been selling other units. After months of speculation regarding the fate of the naval shipbuilding unit, Thyssenkrupp and Carlyle confirmed in March 2024 that they had begun a due diligence evaluating cooperation on the planned separation of the marine business.
“Both companies agreed to enter into an in-depth examination and valuation (due diligence) of Thyssenkrupp's marine business. The subject of this review is a possible partial sale of Thyssenkrupp Marine Systems to Carlyle,” the companies reported.
Thyssenkrupp highlighted that it had begun a strategic review of the marine business in 2023 and was exploring several options and that it would continue to review alternatives. They noted that talks were also being held with the German government on the state's participation in TKMS.
As late as August, Reuters was reporting good progress in the discussions saying that KfW, the German state-owned investment and development bank, had joined in the talks with Carlyle with Reuters reporting a valuation of $1.3 to $1.7 billion for TKMS. Reuters said the companies were targeting completing the deal by September and the close of Thyssenkrupp’s fiscal year.
Thyssenkrupp responded to today’s inquiries from the financial media saying it would continue to pursue the independence of TKMS, possibly through a spin-off of the company. They cite the strong demand for submarines, naval vessels, and surface and underwater technology, saying that it is creating additional growth opportunities for TKMS.
“The independent positioning of the division should enable these opportunities to be better exploited,” Thyssenkrupp said in the past and reconfirmed today. “This independence would also provide a good starting point for possible national and European consolidation.”
The German newspaper Handelsblatt reported in June 2024 that Italy’s Fincantieri had expressed interest in a possible investment in TKMS but would not proceed without assurances from the German government. Fincantieri in June also announced an agreement to acquire the submarine division of Leonardo as it works to expand its role in military systems and specifically subsea operations. A reported proposal from the French Naval Group, known as a leading developed of submarines, for TKMS however was reportedly rejected in Germany because of concerns about intellectual property and jobs.
TKMS operates the largest shipyard in Germany employing around 3,100 people at its facilities in Kiel in addition to smaller facilities in Hamburg, Bremen, and Emden. They previously announced plans to expand investments in the Kiel site as well as an agreement with Germany to take over the Wismar site of the former Genting Hong Kong shipyard MV Werften.
The company dates back more than 185 years but took its current form through the merger of Howaldtswerke-Deutsche Werft (HDW) and Blohm+Voss Naval in January 2013 and the acquisition of Atlas Elektronik in April 2017.
No comments:
Post a Comment