ZIM Integrated Shipping Services (NYSE: ZIM) stock rose more than 1% in pre-market trading Tuesday following the announcement of new long-term charter agreements for ten 11,500 TEU LNG dual-fueled vessels. The total value of the charter hire agreements is approximately $2.3 billion.
The company will charter seven vessels from Containers Ventures Holdings Inc., a subsidiary of the TMS Group, and the remaining three from an affiliate of Kenon Holdings, Ltd., which was ZIM’s largest shareholder until the end of 2024. These vessels will be constructed at Zhoushan Changhong Shipyard in China, with expected delivery dates between 2027 and 2028.
Eli Glickman, ZIM President and CEO, highlighted the significance of these new agreements, noting that they would strengthen the company’s fleet strategy and ensure access to a crucial market segment. He emphasized that the LNG dual-fuel vessels are versatile, well-suited for ZIM’s global trades, and would enhance commercial flexibility and growth potential.
Furthermore, Mr. Glickman pointed out that expanding the LNG fleet aligns with ZIM’s decarbonization goals. He explained that operating LNG-powered vessels has been commercially advantageous for ZIM (NYSE: ZIM), and the growing demand for environmentally friendly shipping options makes the move even more beneficial for the company in the future.
Mr. Glickman concluded,
“The addition of these ten LNG dual-fuel vessels will help keep our modernized fleet competitive and support profitable growth over the long term, benefiting our shareholders.”
