French major CMA CGM has agreed to extend time charter contracts with containership charter owner Global Ship Lease (GSL) for two 2,207 TEU containerships.
The vessels in question are the 2002-built Julie Delmas and the 2003-built Delmas Keta, which will be chartered for a period of 12 months, plus or minus 45 days at charterer’s option.
The deal was agreed at a fixed rate of USD 7,800 per vessel per day, starting immediately upon expiration of the current time charters on September 11 and 20, 2017, respectively.
Extension of charters for two containerships maintains fully chartered fleet on fixed-rate contracts
“We are delighted to have secured extensions for these two time charters with the current charterer, CMA CGM, on an EBITDA positive basis. These agreements are consistent with our strategy of operating our 18-vessel fleet on fixed-rate contracts and our track record of maintaining fleet-wide utilization near 100%, thus enabling us to benefit from a predictable and stable cashflow stream,” Ian Webber, Chief Executive Officer of Global Ship Lease, said
As of August 31, 2017, GSL’s fleet has an average remaining charter term of 3.1 years, or 3.3 years weighted by TEU capacity, representing USD 530 million of contracted revenue.
Looking forward, Webber added that supportive long-term fundamentals and an improving supply/demand balance for mid-sized and smaller containerships “will lead to continued market strengthening, further enhancing the rechartering prospects and economic value of our fleet.”