ZIM signs charter deal for three 7,000 TEU carriers for $400mn
NYSE-listed, Israeli ocean carrier ZIM Integrated Shipping Services announced an eight-year charter agreement with a shipping company affiliated with Kenon Holdings.
January 18, 2022: NYSE-listed, Israeli ocean carrier ZIM Integrated Shipping Services announced an eight-year charter agreement with a shipping company affiliated with Kenon Holdings.
ZIM will charter three 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels for 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.
"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: says Eli Glickman, President & CEO, ZIM. "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."
The transaction also demonstrates ZIM's capital allocation strategy, Glickman added, supporting efforts to strengthen enduring value for shareholders.
ZIM had reported its highest-ever net income of $1.46 billion for the third quarter ended September 30, 2021, on higher freight rates and volumes. ZIM carried 884,000 TEUs in Q3, an increase of 16 percent and the average freight rate zoomed 174 percent to $3,226.
ZIM has increased the 2021 guidance to between $6.2 billion-$6.4 billion of adjusted EBITDA and between $5.4 billion-$5.6 billion of adjusted EBIT.
For nine months, total revenue was $7.26 billion compared to $2.63 billion "driven by an increase in revenues from containerised cargo, reflecting increases in freight rates as well as in carried volume."
ZIM had, in October 2021, announced the acquisition of seven secondhand vessels - five 4,250 TEU vessels and two 1,100 TEU vessels - for approximately $320 million. Glickman had said ZIM will continue to complement the primary strategy of chartering-in the vast majority of vessels by selectively acquiring second-hand tonnage.