- Attractive Transaction to Further Strengthen Core Operating Fleet and Position ZIM at Forefront of Reducing Carbon Intensity
- Vessel Deliveries to ZIM are Scheduled During Q1-Q2 2024
ZIM Integrated Shipping Services (NYSE: ZIM) announced on Tuesday (Jan18) a new eight-year charter agreement with a shipping company that is affiliated with Kenon Holdings Ltd.[1], according to which ZIM will charter three 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels, to serve across ZIM's various global-niche trades for total consideration of approximately $400 million. The vessels will be constructed at Korean-based shipyard, Hyundai Samho Heavy Industries and are scheduled to be delivered during the first and second quarters of 2024.
Eli Glickman, ZIM President & CEO, stated: "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. Importantly, adding "green" LNG-fueled capacity further strengthens ZIM's position at the forefront of reducing carbon intensity among the global liners and will enable us to assist our customers in reducing their carbon footprint."
Mr. Glickman added: "This transaction further demonstrates our prudent capital allocation strategy, supporting our efforts to strengthen our commercial prospects, deliver industry leading profitability, and create enduring value for shareholders."
[1] Kenon Holdings Ltd. is ZIM's largest shareholder, which holds approximately 26% of ZIM's issued share capital.