Photo: Illustration; Source: ZIM

ZIM charters three 7,000 TEU LNG dual-fuel boxships

Israeli shipping company ZIM Integrated Shipping Services has entered into a new eight-year charter agreement for three 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels.

As disclosed, the $400 million agreement was signed with a shipping firm that is affiliated with ZIM’s largest shareholder Kenon Holdings, which holds approximately 26% of ZIM’s issued share capital.

Under the contract, ZIM will charter the three LNG dual-fuel container vessels to serve across its various global-niche trades.

The 7,000 TEU vessels will be constructed at the South Korean shipyard Hyundai Samho Heavy Industries and are scheduled to be delivered during the first and second quarters of 2024.

The company’s president and CEO, Eli Glickman, highlighted that adding “green” LNG-fueled capacity will enable ZIM to assist its customers in reducing their carbon footprint.

“We are pleased to enter into another charter agreement to secure high-quality tonnage, with a focus on adding extremely versatile vessels that could serve us on multiple trades. As we work to secure our core operating fleet to meet growing market demand, we remain committed to maintaining significant fleet flexibility to execute our proven global-niche strategy and best serve our customers”, Glickman said.

In 2021, the Israeli company long-term chartered fifteen 7,000 TEU LNG vessels from Seaspan Corporation under the strategic agreement as well as ten 15,000 TEU LNG-fuelled containerships.

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The deliveries of 7,000 TEU vessels are scheduled to begin in Q4 2023 and continue through 2024 while the deliveries of 15,000 TEU LNG ships are anticipated to begin in the first half of 2023, afterwards starting the 12-year charters.

In October 2021, ZIM revealed that the firm acquired seven secondhand boxships, five of which have the capacity of 4,500 TEU while the other two are 1,100 TEU containerships, in contracts that amount up to $320 million.