Global Ship Lease has chartered out two boxships to CMA CGM for a period of five years.
The 2015-built 6,882 teu UASC Bubiyan and UASC Yas will commence the charters during the second quarter of 2019 at a rate of $25,910 per day. The rate is up from $20,000 per day the vessels, brought in from the acquisition of Poseidon Containers, are fetching under their current charters.
Ian Webber, chief executive officer of Global Ship Lease, commented: “These new long-term charters with CMA CGM demonstrate the clear market demand for the modern, high-specification, eco, wide-beam containerships acquired through our recent strategic combination with Poseidon Containers. In addition to the substantial value of the merger as originally announced, our subsequent chartering activity related to Poseidon legacy vessels continues to produce the incremental value that we anticipated, having now added more than $280 million of incremental contracted revenue and over $200 million of incremental EBITDA, while increasing our weighted average remaining charter term beyond that of the GSL legacy fleet and bringing our charter-attached NAV to over $500 million as of September 30, 2018. In this way, we are once again significantly improving GSL’s earnings profile and long-term cashflow visibility as we clearly benefit from the substantial value brought to the table by Poseidon Containers.”
These new charters with CMA CGM, the company’s largest shareholder, are valued at around $94m in total.