Global Ship Lease books 10 charter-backed mid-size box ships

The US-listed Greek owner announced on 4 June that it had ordered 10 mid-sized, ultra-high-reefer, wide-beam, latest-generation container ships for approximately US$917M, with deliveries scheduled through Q1 2030.

While Global Ship Lease did not disclose the identity of the shipbuilder, shipbroking sources indicated that the vessels will be constructed at a Chinese yard.

Upon delivery, the newbuildings will be employed under multi-year charter contracts with a TEU-weighted average duration of 6.7 years. The charter agreements are expected to generate aggregate adjusted EBITDA of approximately US$665M over their respective terms.

Global Ship Lease executive chairman George Youroukos said the agreements are consistent with the company’s “long-held strategy of mitigating downside risk while unlocking attractive upside potential.”

The company’s existing forward charter coverage stands at US$2.1Bn, with an average remaining duration of 2.6 years.

According to Global Ship Lease, the newly contracted vessels offer significant operational flexibility and “have been designed and specified to ensure a superior fit for existing and future market needs.”

Mr Youroukos noted that these “best-in-class vessels” are expected to replace the company’s current “cash cows” as they gradually age out of the fleet.

The owner now operates a fleet of 71 vessels with a TEU-capacity-weighted average age of 18.2 years.

Speaking earlier this week during Posidonia, Mr Youroukos said the shipping industry appears to be experiencing a fear of missing out (FOMO), which is fuelling investment activity across all sectors. However, he drew a distinction between orders supported by long-term charter coverage and those placed on a speculative basis.