Zim Integrated Shipping Services Ltd. (NYSE: ZIM) is continuing to operate on a different business model to its rivals by leasing ships from third parties rather than owning them. Zim today only owns one ship. The company believes this policy provides greater financial flexibility in times of crisis or rising demand and enhances profit. Zim and Seaspan Corporation announced today a new strategic agreement for the long-term charter, worth $1.5 billion, of 10 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels. This follows a similar deal in February 2021, when Zim and Seaspan announced a long-term charter agreement for ten 15,000 TEU LNG-fueled vessels.
Zim held its IPO on the NYSE in January and since then its share price has risen 170% to $40.45, giving a market cap of $4.7 billion.
Zim president & CEO Eli Glickman said, "We are very pleased to once again partner with Seaspan as we strategically enhance our operating fleet to further facilitate our long-term strategy. With this second long-term chartering agreement, we are securing access to our core fleet, while maintaining operational agility with respect to the total number of vessels we operate. Since going public, and further evidenced by this transaction, we remain committed to deploying capital prudently and enhancing shareholder value."
He added, "Keeping with our commitment to reducing our carbon footprint and preserving our oceans, we are investing in state-of-the-art 'green' vessels that use the cleanest technology currently available. We are proud that this transaction will further improve our carbon intensity standing among the global liners."
Published by Globes, Israel business news - en.globes.co.il - on July 7, 2021
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