ZIM splashes $320 million on seven containerships

Israeli shipping company ZIM Integrated Shipping Services has revealed that during the month of October the firm acquired seven secondhand boxships in a number of separate transactions.

As informed, the secondhand vessels are built between 2007 and 2006. Five of them have the capacity of 4,500 TEU while the last two are 1,100 TEU containerships. The total value of the contracts goes up to $320 million.

“Since going public our focus has been to allocate capital to strengthen our commercial prospects and create long-term shareholder value. With the opportunistic acquisition of these much-needed vessels, we have drawn on … our agile approach to maintain and expand our operating flee,” Eli Glickman, ZIM President & CEO, stated.

“Going forward, we will continue to complement our primary strategy of chartering-in the vast majority of our vessels, by selectively acquiring second-hand tonnage when the appropriate opportunities arise.

“Last month, the company exercised its option to long-term charter additional five 7,000 TEU liquefied natural gas (LNG) dual-fuel container vessels from Seaspan Corporation.

The vessels are part of the agreement between ZIM and Seaspan Corporation that entails long-term charters. Back in July this year, Seaspan Corporation revealed an order for ten 7,000 TEU dual-fuel LNG containerships.

Under this previously announced transaction, ZIM already entered into long term charter agreements for the ten 7,000 TEU LNG vessels which are due to be delivered starting from the fourth quarter of 2023 and into 2024.

Therefore, the total vessels to be chartered under this transaction after the option exercise is fifteen.