MPCC's Bold Move: Four New Ships, Four Long-Term Commitments
In a significant development, Watson Farley & Williams (WFW) has guided MPC Container Ships ASA (MPCC) through a substantial investment in its fleet. MPCC has ordered four cutting-edge container ships, each with a long-term charter agreement attached.
The deal involves the construction of four 4,500 TEU vessels, priced at US$58 million each, by Jiangsu Hantong Ship Heavy Industry Co. Ltd., a Chinese shipbuilder. These ships are scheduled for delivery in the first half of 2028, with an option to order two more at the same price.
Here's where it gets innovative: the vessels will be custom-made to meet the charterer's unique requirements and sustainability targets. They will feature advanced energy-efficient technology, reducing slot costs by a remarkable 50% as MPCC upgrades its fleet. Each ship will be leased to a leading global liner shipping company for an initial 10-year period, with potential extensions, generating an estimated US$375 million in revenue.
MPCC, headquartered in Oslo, is a prominent player in the container ship industry, specializing in small to medium-sized vessels. Their business model revolves around owning and operating container ships under long-term charter agreements, serving regional trade routes.
WFW's Maritime team, led by Hamburg Corporate Partner Dr. Christian Finnern, played a pivotal role in this transaction. Associates Maximilian Hennig and Bjarne Ruthke provided essential support, while Hamburg partner Dr. F. Maximilian Boemke advised on regulatory matters. London Partners Joe McGladdery and Charles Buss brought their expertise in English law to the table.
Dr. Finnern shared his enthusiasm: 'This deal is a testament to our enduring partnership with MPCC. By investing in these energy-efficient ships with long-term charters, MPCC is ensuring its competitive edge and commitment to sustainability in shipping. We're proud to have contributed to the legal intricacies of this ambitious project.'
And this is the part most people miss: the deal's impact on the industry. As MPCC modernizes its fleet, it sets a new standard for energy efficiency and sustainability. But will this trend be embraced by all players in the maritime industry? Share your thoughts in the comments below. Is this a game-changer, or are there potential drawbacks to such long-term commitments?
