February 12, 2021
In a sign of the growing trend towards the use of LNG in the container ship sector, ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), of Haifa, Israel, has signed a 12-year agreement to charter ten new 15,000 TEU vessels. with LNG. (NYSE: ZIM), Haifa, Israel, has reached a 12-year agreement with Seaspan Corporation to charter ten 15,000 TEU dual-fuel vessels from Seaspan Corporation.
Seaspan, a subsidiary of Atlas Corp. (NYSE: ATCO) has ordered the vessels from South Korean company Samsung Heavy Industries. Deliveries are expected to begin in the first half of 2023,
ZIM will deploy the vessels on its Asia-East Coast of the United States route, where it has an estimated market share of 9%.
BILLION DOLLAR AGREEMENT
"This is a milestone deal for ZIM, valued at over $1 billion, allowing us to achieve two important strategic objectives.
First of all, these advanced, top-of-the-line vessels will enable us to meet the growing market demand in trade between Asia and the East Coast of the United States and provide a high-level and reliable service to our customers on this important trade route.
Secondly, in line with our core values of sustainability, the investment in LNG-powered "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."
Eli glickman President and CEO of ZIM,
"We are very pleased to partner with ZIM to facilitate our client's industry-leading environmental initiative. This transaction signifies both ZIM and Seaspan's commitment to ESG principles, carbon reduction and a determination to contribute to a better business community." greener in the future."
Bing Chen, Chairman and CEO of Seaspan
FINANCING LINKED TO SUSTAINABILITY
The news of the Zim deal followed an earlier announcement by Seaspan about the order for the new construction in which Chen said:
"We are expanding the reach of our solutions for customers by elevating our focus on reducing emissions impact, which will be a result of the adoption and addition of LNG-powered vessels to our fleet. As we have executed financing linked to sustainability that parallels this fleet expansion, we are determined to contribute to a greener business community in the future. These transactions clearly demonstrate our ability to seize opportunities to develop industry-leading solutions for customers and our commitment to quality growth backed by committed long-term partnerships."
Bing Chen, Chairman and CEO of Seaspan
