ZIM Reveals Long-Term Charters for Six 5,500 TEU Containerships

Mike Schuler
Total Views: 1829
March 30, 2022

Israeli shipping company ZIM Integrated Shipping Services (NYSE: ZIM) has announced new charters for up to six newbuild 5,500 TEU wide beam containerships from “a group of investors initiated by MPC Capital AG,” ZIM announced Wednesday.

The charters cover a period of seven years for a total hire of $600 million, ZIM said.

The vessels will be constructed in South Korea by HJ Shipbuilding & Construction (former Hanjin Heavy Industries & Construction Co.) with deliveries scheduled between May 2023 and February 2024.

Breaking that down that’s $39,138 per ship per day for seven years starting no earlier than Spring 2023.

“We are pleased to announce another attractive chartering transaction for newbuild vessels, securing modern and efficient tonnage vessels which are ideally suited to serve on our expanded network of expedited services, as well as other regional services,” said Eli Glickman, ZIM President & CEO. “We continue to advance our strategy of chartering in highly versatile vessels to strengthen our commercial prospects, maintain our flexibility and enhance our position as an innovative provider of seaborne transportation. With a commitment to delivering industry superior profitability, we expect to continue to employ a prudent capital allocation approach, while maintaining our operational agility and creating enduring value for shareholders.”

ZIM is the world’s 10th largest ocean carrier operating a fleet of 123 ships—including only six owned and the rest chartered in—representing nearly 450 million TEU capacity, according to the latest data from Alphaliner.

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