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Seaspan expects consolidation among container owners

The world's largest owner of container tonnage, Seaspan, expects to see large-scale consolidation in the market in coming years.

Seaspan
Photo: Seaspan

There will be far fewer players among the owners of container tonnage over the coming year, says David Sokol, chairman for Seaspan, the world's largest owner of container tonnage.

"I think on the short term the opportunities are consolidation within the sector," said Sokol in an analysts' call on May 3 according to IHS Fairplay.

He believes that a consolidation will be driven by the limited financing opportunities in the market, and that the operators of container tonnage will have a strong demand.

"Our customers are working very hard to provide their customers greater cost certainty, time certainty, schedule certainty, and that's going to flow down with their demands for us. And the one-off owner, the five-off owner, just aren't going to be able to compete in that market very long. It may take 3–5 years to see that consolidation really aggressively happen, but that's fine," Sokol said.

Seaspan has also taken part in the consolidation after acquiring Greater China Intermodal Investments last year, adding 18 vessels to the fleet.

The acquisition helped to strengthen Seaspan's earnings, which landed at USD 224.7 million, an improvement on the first quarter of 2017, where earnings came to USD 201.3 million.

English Edit: Lena Rutkowski

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