Seaspan demands "cheaper, better" newbuildings

The challenge to the world’s biggest shipbuilders comes from Seaspan chief executive Gerry Wang, who is stepping up pressure on the yards to respond to customer requirements rather than continue offer out-dated products.

Seaspan is already talking to banks about the next series of ships it wants to order, with between 20 and 30 newbuildings “a not unrealistic target”.

Long-term charterers are also being lined up.

An order of that size could be worth US$2bn-$3bn, but Seaspan will not commit to any newbuilding program until the shipyards stop resisting calls for change and instead offer what their customers want.

“If the price is right and the design is right, then we are ready to go,” Mr Wang said.

“But we will be patient."

Seaspan, one of the pioneers of 8500 teu and 9600 teu ship development and with eight 13,100 teu ships in the pipeline for delivery next year, is urging all owners and operators to take a firm stand with the shipyards and refrain from ordering until there has been a technological and pricing revolution.

The New York-listed tonnage provider is not looking for just modest price cuts or some tinkering with basic ship specifications, but a complete rethink on both the cost and weight of vessels.

Newbuilding prices for large containerships, which have come down about 20% from their peak, need to be between 30% and 40% cheaper than they were at the highest point, Mr Wang said.

Containerships also should be about 10% lighter than those in service today through the use of new materials, he said.