Yang Ming extends charter terms for five 14,000-TEU ships Taiwanese ocean carrier Yang Ming Line has confirmed that the fixed-rate time charter terms for five 14,000-TEU container ships, currently being built by CSBC Corp., will be extended to 10 years, with one two-year option, according to Seaspan. Two of these vessels previously had been allocated to Seaspan, and three had been allocated to Greater China Intermodal Investments, or GCI, under the right of first refusal agreement among Seaspan, GCI and Blue Water Commerce. GCI is a joint venture between Seaspan and an affiliate of global asset manager Carlyle Group, the Tiger Group and Washington family interests, according to Alphaliner. Separately, the option that Yang Ming held to purchase up to five new 14,000-TEU vessels currently being constructed at Hyundai Heavy Industries has expired, and therefore all five of these 14,000-TEU ships will also be time chartered to Yang Ming for 10 years with one two-year option. Three of these vessels previously have been allocated to Seaspan and two have been allocated to GCI under the right of first refusal agreement. “With todays agreement, Yang Ming confirmed Seaspan will build and manage a total of 15 SAVER design vessels for Yang Ming under 10+2-year fixed-rate time charters,” said Gerry Wang, CEO, co-chairman and co-founder of Seaspan, in a press release. “This will further increase Seaspan’s contracted revenue stream, enhance its earnings power and strengthen Seaspan’s relationship with one of the premier liner companies.” The 15 14,000-TEU ships are scheduled for delivery in 2015 and 2016, Alphaliner said. Yang Ming owns 45 ships totaling 414,512 TEUs; charters 45 ships totaling 185,621 TEUs, or 44.8 percent of its fleet; and has on order 18 ships totaling 224,646 TEUs, or 54.2 percent of its existing fleet, according to Alphaliner. Yang Ming returned to the black in the second quarter of 2014, following losses in the same period in 2013 and in the previous quarter, Seatrade Global reported in August. Its revenue also rose, boosted mainly by freight rate hikes for U.S. trade lines, the publication said. In 2013, analysts said they expected no pickup in the performance of Yang Ming in 2014 due to its high unit costs, small ships and overexposure to volatile east-west trades. Last month, Yang Ming upgraded its intra-Asia service network to better meet growing demand in the region. JOC NEWS - SEPT 12 2014
Posted on: Sat, 13 Sep 2014 00:24:20 +0000
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