In the global shipping finance and insurance sector, the internationalization of the renminbi (RMB) has reached a landmark milestone. Recently, Seaspan Corporation, led by Chen Bing, officially introduced the RMB into the international Protection and Indemnity (P&I) insurance market, becoming the first overseas shipowner to pay P&I club premiums in RMB to the China Shipowners Mutual Assurance Association.

This week, Seaspan and the China Shipowners Mutual Assurance Association formally signed an agreement in Shanghai. Under the terms of the agreement, two newly built 14,000 TEU container vessels owned by Seaspan will pay P&I premiums and join the association through cross-border RMB settlement. The China Shipowners Mutual Assurance Association noted that this is the first time the association has accepted new vessels from an overseas shipowner with RMB premium payments, and it represents a pioneering exploration of offshore RMB settlement in the global P&I insurance market, carrying significant implications for both the P&I insurance sector and the association's business development.

It is understood that the current agreement covers only the settlement of P&I premiums, with future claims, guarantees, or reinsurance payments not yet included in the RMB settlement scope. This breakthrough marks the official entry of the RMB into the core areas of shipping finance traditionally dominated by the US dollar and the London and Nordic insurance markets, while further solidifying Seaspan's growing financial ties with the Chinese market.

In recent years, Seaspan has been systematically building a RMB financial for its operations in China. On the shipbuilding and leasing front, the company ordered six 13,600 TEU container vessels from Hudong-Zhonghua Shipbuilding in 2024, with all construction contracts denominated in RMB. Three of these vessels secured approximately RMB 3.5 billion (around US$490 million) in leasing financing support from Chinese lessors, and have been placed on long-term time charters with Orient Overseas Container Line (OOCL) for a 15-year period, with total charter hire amounting to RMB 11.2 billion.

On the capital markets side, Seaspan successfully entered China's panda bond market earlier this month, becoming the first international shipowner to issue such bonds. Through a three-year private placement bond with a coupon rate of 2.5%, Seaspan raised RMB 1.5 billion, further broadening its funding sources.