ZIM Integrated Shipping Services, one of the leading carriers in the global container shipping industry, has inked the eight-year charter agreement for three 7,000 TEU liquefied natural gas (LNG) dual-fuel ISO tank carriers.
LNG carried in ISO tank containers is predicted to be a fast-growing method in LNG transportation because of its flexibility.
ZIM revealed the charted vessels are on a $400 million agreement that 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.
The advantage of ZIM is it operates in select trades, where it has a competitive advantage and where it can provide superior service. To maintain its strength, 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 ten 15,000 TEU LNG-fuelled containerships incorporation with the world’s largest independent container ship owner Seaspan.
The new ships are scheduled to be delivered from the fourth quarter of 2023 to 2024. The total contract price is approximately US$1.05 billion, which is 105 million US dollars per vessel.