ZIM to Charter LNG Containerships for Asia-U.S. East Coast Trade

Post Date: 12/02/2021

Israeli shipping company ZIM has announced a strategic chartering agreement with Seaspan for the long-term charter of ten 15,000 TEU-capacity containership fueled by liquefied natural gas.

ZIM says the newbuild ships will be deployed on its Asia-U.S. East Coast trade, where ZIM claims a 9% market share.

“This is a milestone agreement for ZIM, valued in excess of one billion dollar, that enables us to achieve two important strategic objectives,” said Eli Glickman, ZIM President & CEO. “First, these top of the line advanced vessels will allow us to meet growing market demand on the Asia – US East Coast trade and provide top-level, reliable service to our customers on this important trade lane. Second, in line with our core sustainability values, investing in LNG-fueled “green” vessels demonstrates our continued commitment and leadership in addressing environmental issues related to our industry, meeting customer demand to reduce CO2 emissions, helping to preserve clean air and reducing our carbon footprint. We are delighted to partner with industry leaders such as Seaspan and Samsung Heavy Industries on this transaction.”

Seaspan has commissioned South Korea’s Samsung Heavy Industries to construct the ships.

“We are very pleased to partner with ZIM to facilitate our customer’s industry leading environmental initiative,” said Bing Chen, Chairman, President and CEO of Seaspan. “This transaction signifies both ZIM’s and Seaspan’s commitment to ESG principles, carbon reduction, and resolve to contribute to a greener business community in the future.”

ZIM recently IPO’d on the New York Stock Exchange (NYSE: ZIM) which raised $217.5 million. After failing initially, the company stock price has climbed more than 60% to more than $19 per share on Friday.

Courtesy: Mike Schuler