Zim Integrated Shipping Services Ltd. (NYSE: ZIM) has signed a strategic agreement with Atlas Corp. unit Seaspan Corporation for the long-term charter of ten 15,000 TEU liquefied natural gas (LNG) dual-fuel container vessels. The vessels will serve Zim's Asia - US East Coast trade.
Zim president and CEO Eli Glickman said, "This is a milestone agreement for Zim, valued in excess of one billion dollars, which enables us to achieve two important strategic objectives. First, these top of the line advanced vessels will allow us to meet growing market demand on the Asia - US East Coast trade and provide top-level, reliable service to our customers on this important trade lane. Second, in line with our core sustainability values, investing in LNG-fueled "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."
Korean-based Samsung Heavy Industries has been commissioned by Seaspan to build these vessels. It is one of the world's largest shipyards with major experience in LNG-fueled vessels.
Seaspan president and CEO Bing Chen said, "This transaction signifies both ZIM's and Seaspan's commitment to ESG principles, carbon reduction, and resolve to contribute to a greener business community in the future."
Zim's share price rose 7.65% on Friday to $20.12, giving a market cap of $2.304 billion, up 25% from its IPO at the end of last month.
Published by Globes, Israel business news - en.globes.co.il - on February 14, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021