HONG KONG's non-operating shipowner Seaspan has been forced to recognise impairment charges of US$285 million in 2016 on 16 ships under 5,000-TEU.The Hanjin Shipping bankruptcy left Seaspan with $19.7 million in unpaid charter hire and three 10,000-TEU ships on long-term charter, which became unemployed.
Impairment charges were made because of the deterioration in market rates and the consequent decline in the vessels' market value.
Revenue for the full year was up 7.2 per cent on 2015 to $878 million, due to the impact of the arrival of newbuild vessels.
Seaspan said that a short-term charter had been found for only one ship since they were returned by the bankrupt Korean carrier, but next month all three will be out on 12-month charters with options to extend.
In a results conference call, CEO Gerry Wang said "a corner had been turned" and he "remained committed to our strategy", reported London's Loadstar.
"While some in our industry will have great difficulties to survive, we know that the best returns occur during periods of weakness and in down cycles," said Mr Wang.
"Seaspan was born during the Asia financial crisis (1997) and it is part of our DNA," he said.
"We will be looking to modernise the fleet with selective acquisitions and modernisations, primarily through distress options, which could be ships that may have been left at shipyards by owners, or ones that that are under contract but whose owners are under financial distress," he said.
The need for a war chest was the reason given by the company for reducing the dividend on its common stock from 37.5 cents per share to 12.5 cents.
Seaspan has eight ships under construction, one 14,000-TEUer, which will be chartered to Yang Ming for 10 years; five 11,000-TEU ships, which will be bareboat chartered to MSC for 17 years; and two 10,000-TEU ships, which have no charters as yet.