In a significant move to bolster its fleet with environmentally friendly vessels, Israeli shipping company ZIM has entered into long-term charter agreements for ten newbuild LNG dual-fuel container ships.
These vessels, each with a capacity of 11,500 twenty-foot equivalent units (TEUs), are being constructed at China’s Zhoushan Changhong Shipyard and are scheduled for delivery between 2027 and 2028.
Details of the Charter Agreements
The charter agreements involve two prominent entities:
- Containers Ventures Holdings: Led by Greek shipping magnate George Economou, this company will supply seven of the vessels. This initiative marks Mr. Economou’s re-entry into the container ship sector and his first collaboration with Zhoushan Changhong Shipyard.
- Kenon Holdings: Controlled by Idan Ofer, Kenon Holdings will provide the remaining three vessels. Notably, Mr. Ofer was ZIM’s largest shareholder until the end of 2024.
The total charter hire consideration for these agreements is approximately US$2.3 billion.
Strategic Implications for ZIM
Eli Glickman, ZIM’s President and Chief Executive Officer, emphasized that these agreements are a strategic step to reinforce the company’s LNG-powered fleet. He stated, “Expanding our LNG fleet supports ZIM’s decarbonization objectives and solidifies our position at the forefront of sustainable shipping practices.”
Environmental Commitment
The adoption of LNG dual-fuel technology aligns with ZIM’s commitment to reducing greenhouse gas emissions and adhering to stringent environmental regulations. LNG propulsion offers a cleaner alternative to traditional marine fuels, significantly lowering emissions of sulfur oxides (SOx), nitrogen oxides (NOx), and particulate matter.
By chartering these advanced LNG dual-fuel vessels, ZIM not only enhances its operational capacity but also demonstrates a proactive approach to environmental stewardship in the maritime industry.
