Zim confirms long-term charters of Economou boxship newbuildings
- Zim has announced agreement to charter seven boxships from George Economou’s TMS Group
- A further three vessels of same 11,500 teu design will be chartered from Idan Ofer-owned Kenon Holdings
- All 10 vessels were ordered from China’s Zhoushan Changhong Shipyard in February
Liquefied natural gas dual-fuel newbuildings are set to hit the water in 2027 and 2028
ISRAELI container line operator Zim has confirmed that it has entered into long-term charter agreements for a new series of 10 sub neo-panamax containerships.
The 11,500 teu vessels were ordered in February by George Economou’s TMS Group from Chinese shipbuilder Zhoushan Changhong Shipyard.
They were specified to liquefied natural gas dual fuel specification and are set for delivery in 2027 and 2028.
Zim said that seven of the vessels will be chartered from TMS Group subsidiary Containers Ventures Holdings.
The remaining three ships will be chartered from an affiliate of Idan Ofer’s Kenon Holdings, which was Zim’s largest shareholder until late 2024. They are understood to have been resold by TMS to Kenon Holdings.
Commenting on the agreement, Zim president and chief executive Eli Glickman said: “These agreements ensure access to an important vessel segment and further strengthen our core LNG fleet, which is a critical commercial differentiator.
“Importantly, this versatile capacity is ideally suited for Zim’s various global trades, enhancing our commercial agility and growth potential,” added Glickman.
The new ships are being built to a standard design provided by Chinese ship designer CIMC ORIC. The company is a division of China International Marine Containers which is a shareholder in Zhoushan Changhong Shipyard.
Vessels of the same design have previously been ordered by the world’s largest container line operator Mediterranean Shipping Co.
Having adopted a strategy of utilising mostly short-term chartered tonnage since the company listed on the New York Stock Exchange in 2021, Zim has since been entering into long-term charter agreements with major tonnage providers.
With its latest long-term agreement, Zim appears to be continuing its transition towards long-term charter commitments with alternative-fuel ships, and at the same time reducing its exposure to the charter market.
Zim did not disclose the charter period or daily charter rates but stated that total charter hire consideration was “approximately $2.3bn”.
