Seaspan breaks dollar dominance: first P&I calls in renminbi
The Canadian containership lessor settles protection and indemnity premiums in RMB for two 14,000 teu newbuildings.
Seaspan has shattered a long-standing maritime finance norm by settling protection and indemnity (P&I) calls with China P&I Club in renminbi, marking the first time an overseas shipowner has used the Chinese currency for such payments. The agreement, signed this week in Shanghai, covers two 14,000 teu newbuildings and introduces the RMB into a sector traditionally dominated by the US dollar and London-based insurance markets.
The deal initially covers only P&I calls, regular premium payments, rather than claims, guarantees, or reinsurance settlements. However, industry analysts suggest this could pave the way for broader adoption of the RMB in marine insurance, particularly as Chinese leasing and financing become more prevalent in global shipping. Seaspan’s decision follows a pattern of deepening financial ties with China, including a RMB1.5bn ($490m) panda bond issued earlier this month and a RMB3.5bn ($490m) leasing facility for three 13,600 teu vessels ordered in 2024.
Why the RMB move matters for global shipping finance
China P&I Club described the arrangement as a “pioneering use of offshore RMB in international P&I insurance,” highlighting its potential to reduce currency risk for shipowners with significant exposure to Chinese charterers or financiers. The club, officially known as China Shipowners Mutual Assurance Association, is one of the few non-Western entities offering P&I coverage, and its growing role reflects China’s expanding influence in maritime finance.
OOIL (OOCL)
Seaspan’s shift to RMB extends beyond insurance. The company’s six 13,600 teu vessels, ordered at Hudong-Zhonghua in 2024, are chartered to OOCL under 15-year agreements worth RMB11.2bn ($1.55bn). Three of these vessels are backed by Chinese leasing finance, demonstrating Seaspan’s strategic alignment with China’s financial ecosystem. The panda bond issuance, carrying a 2.5% coupon over three years, further underscores this trend, making Seaspan the first international shipowner to tap China’s domestic bond market.
Seaspan’s RMB strategy: beyond P&I calls
For shipowners, the move could signal a broader shift away from dollar-denominated transactions, particularly as geopolitical tensions and currency fluctuations increase costs. However, the RMB’s limited convertibility and the dominance of Western P&I clubs may slow widespread adoption. Industry observers note that while the deal is symbolic, its long-term impact will depend on whether other major players follow suit.
The maritime insurance sector has long relied on the US dollar and London-based clubs for P&I coverage, with the International Group of P&I Clubs (IGP&I) handling the majority of global tonnage. Seaspan’s decision to settle calls in RMB challenges this status quo, offering a potential alternative for shipowners with strong ties to China. The move could also encourage other Chinese financial institutions to expand their offerings in marine insurance, further diversifying the market.
However, the RMB’s role in maritime finance remains constrained by regulatory hurdles and the dollar’s entrenched position. While the deal is a milestone, it is unlikely to displace the dollar overnight. Instead, it may serve as a test case for future RMB-denominated transactions in shipping, particularly as China continues to push for greater internationalisation of its currency.
For now, Seaspan’s agreement with China P&I Club stands as a bold step toward a more multipolar maritime finance landscape, one where the RMB could play a larger role alongside the dollar, euro, and yen.
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