ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), announced on Wednesday (Sep 01) the exercise of its option to long-term charter additional five 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels from Seaspan Corporation, pursuant to a transaction previously announced by ZIM and Seaspan in July 2021.
Under this previously announced transaction, ZIM already entered into long term charter agreements for ten 7,000 TEU LNG vessels which are due to be delivered starting from the fourth quarter of 2023 and into 2024, so that the total vessels to be chartered under this transaction after the option exercise is fifteen (15). The value of this option for ZIM is in excess of $750 million.
Eli Glickman, ZIM President & CEO, stated: "With this option exercise, we are securing ZIM's core fleet needed to serve our operations and meet our customers' growing needs, while continuing to maintain our operational agility. Furthermore, this transaction demonstrates our deep commitment to the environment and to reducing our carbon footprint. We continue to invest the resources necessary to be an industry leader and to prepare ourselves for the cleaner future of our industry."