QUOTE AND NEWS
Benzinga  Apr 1  Comment 
Below are the top mid-cap shipping stocks on the NYSE and the NASDAQ in terms of dividend yield. Teekay LNG Partners LP (NYSE: TGP) has a dividend yield of 6.80%. Teekay LNG Partners' shares closed at $41.33 yesterday. Teekay Offshore...
DailyFinance  Apr 1  Comment 
HONG KONG, CHINA -- (Marketwired) -- 03/31/14 -- Seaspan Corporation ("Seaspan") (NYSE: SSW) announced today that in connection with its previously announced public offering of 6.375% senior unsecured notes due 2019 (the "Notes"), the...
DailyFinance  Apr 1  Comment 
HONG KONG, CHINA -- (Marketwired) -- 03/31/14 -- Seaspan Corporation (NYSE:SSW) announced today that it has exercised options for the construction of four 10,000 TEU class containerships at Jiangsu New Yangzi Shipbuilding Co., Ltd. and Jiangsu...
DailyFinance  Mar 31  Comment 
HONG KONG, CHINA -- (Marketwired) -- 03/31/14 -- Seaspan Corporation ("Seaspan") (NYSE:SSW) announced today that in connection with its previously announced public offering of 6.375% senior unsecured notes due 2019 (the "Notes"), the underwriters...
DailyFinance  Mar 31  Comment 
HONG KONG, CHINA -- (Marketwired) -- 03/31/14 -- Seaspan Corporation (NYSE: SSW) announced today that it has exercised options for the construction of four 10,000 TEU class containerships at Jiangsu New Yangzi Shipbuilding Co., Ltd. and Jiangsu...
DailyFinance  Mar 27  Comment 
HONG KONG, CHINA -- (Marketwired) -- 03/27/14 -- Seaspan Corporation ("Seaspan") (NYSE: SSW) announced today that it has priced its previously announced $300 million public offering of senior unsecured notes due 2019 (the "Notes"). The Notes...
newratings.com  Mar 26  Comment 
HONG KONG (dpa-AFX) - Seaspan Corp. (SSW) said Wednesday that it plans to offer senior unsecured notes due 2019 in a registered public offering. The company said it plans to use the net proceeds from the offering for general corporate purposes....
DailyFinance  Mar 20  Comment 
HONG KONG, CHINA -- (Marketwired) -- 03/20/14 -- Seaspan Corporation (NYSE:SSW) announced today that it accepted delivery of a 10000 TEU containership, the Hanjin Buddha, which was constructed using Seaspan's fuel-efficient SAVER design. The new...
DailyFinance  Mar 11  Comment 
HONG KONG, CHINA -- (Marketwired) -- 03/11/14 -- Seaspan Corporation (NYSE: SSW) announced today that its Form 20-F for the year ended December 31, 2013 has been filed with the Securities and Exchange Commission and is accessible free of charge...
SeekingAlpha  Mar 9  Comment 
By Double Dividend Stocks: Shopping for steady high-yield income? Seaspan, (SSW), not only has oversold common shares with a 5%-plus dividend yield, it also recently introduced a new, E-series preferred dividend, (SSW-E), which yields over 8%....




 
TOP CONTRIBUTORS

Seaspan owns and charters containerships. The company makes money by entering into long-term, fixed-rate charters as well as seeking additional accretive vessel acquisitions over the mid to long-term. The company operates roughly 55 vessels with an average age of about 4.9 years.[1] In recent, the company has increased its exposure to China by purchasing a significant number of newbuilding containerships constructed by Chinese shipyards.

Business Growth

Seaspan persists operating performance through the number of long-term charters and the fixed-rate charged to those transactions. A time charter is essentially a contract for the use of a vessel for a fixed period of time at a specified daily rate. Under a time charter, the vessel owner provides crewing and other services related to the vessel’s operation, the cost of which is included in the daily rate; the charterer is responsible for substantially all of the vessel voyage expenses, such as fuel (bunkers) cost, port expenses, agents’ fees, canal dues, extra war risk insurance and commissions.[2]

Trends and Forces

SSW Operates in a Capex Intensive Industry that Favors Newer Vessels

SSW operates in an industry that is highly competitive, where newer fleets tend to receive more business due to reliability. Further, older ships require more capital expenditure and are also harder to estimate. Finally, in lieu of changes in government regulation, compliance with customer requirements may force SSW to alter or add new equipment. In this regard, SSW's average age of all vessels is approximately 5 years, but will need to continue to operate newer machinery to sustain its business.

The Amount of Revenues for Shipping is Highly Dependent Upon Demand on Goods Shipped

The demand of goods shipped is often illustrated by the Baltic Dry Index - BDI (BALDRY). In recent times, while there was disagreement in the industry over whether demand would keep pace, with world economic growth slowing down, there is little doubt that if all new shipbuilding orders were completed there would be an oversupply.[3] As such, because the number of ships cannot be easily corrected for demand of goods shipped, an oversupply of ships immediately means a decrease in revenues. The shipping industry which SSW operates under would immediately be affected by this situation, and therefore is highly correlated to the index as shown below.


Competition

ISH competes with other international shipping service companies such as:

  • International Shipholding (ISH) operates a diversified fleet of US and international flag vessels.
  • Diana Shipping (DSX) specializes in transporting dry bulk cargoes, including such commodities as iron ore, coal, grain and other materials along worldwide shipping routes.[4]
  • Genco Shipping (GNK) transports iron ore, coal, grain, steel products and other drybulk cargoes along worldwide shipping routes.[5]



References

  1. SSW FY2010 20-F, Pg 60
  2. FY2010 20-F, Pg 35
  3. Diana Shipping Trends and Forces
  4. DSX Business Description
  5. GNK Business Description
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