New multi-year charter for 8,600 TEU, 2004-built GSL Ningbo generating annualized EBITDA at approximately 3.1 times existing rate
Global Ship Lease, Inc. (NYSE: GSL) announced on Tuesday (May17) a forward agreement of a 48-52 month charter for the 8,600 TEU, 2004-built GSL Ningbo. The charter under the new terms is scheduled to commence in July 2023, at a rate generating average annualized EBITDA of approximately $16.6 million, which is 3.1 times that under its existing charter agreed in late 2020.
George Youroukos, Executive Chairman of Global Ship Lease, commented, “We are proud to announce this forward charter for the GSL Ningbo, at an attractive rate and multi-year duration that demonstrate the continued strength of the charter market. We believe that this long-term forward charter on a vessel that will be approaching 20 years old is illustrative of not just an expectation by our liner customers that containerized freight demand will remain robust, but also a recognition that a highly specified and well-maintained older vessel can remain a key contributor well into its third decade of operation. This forward charter materially improves our contract cover and forward visibility on cash flows, consistent with our conservative and risk-averse strategy of locking in value over time, and we remain focused on securing similar such attractive charters moving forward.”