ZIM Integrated Shipping Services, the Israeli containership company listed on the New York Stock Exchange, has signed a liquefied natural gas bunkering accord valued at $1 billion with UK-based energy major Shell.
The Haifa, Israel-based company has sign the deal to secure LNG fuel for 10 LNG-powered vessels that will be deployed for ZIM's flagship ZIM Container Service Pacific (ZCP) business covering the Asia-to-US East Coast trade route.
Delivery
These 10 vessels of 15,000 twenty-foot equivalent units (TEU) are expected to enter into service during 2023-2024 and will be transporting goods from China and South Korea to the US East Coast and the Caribbean.
The bunkering deal with Shell follows long-term charter agreements signed by ZIM in 2021 to charter the dual-fuel containerships being constructed in South Korea.
ZIM’s charter deal was in the form of strategic agreement with the owners of the ships, Seaspan Corp.
While ZIM’s headquarters are in the Israeli port of Haifa it also has a North American base at Norfolk in Virginia.
ZIM noted in its statement that about 23 percent of total shipping emissions are from the container segment alone and with increasing global trade of goods, these emissions need to be addressed on a prompt basis.
The company stated that LNG remained the lowest carbon fuel available at scale today and it provides 20 percent less greenhouse-gas emissions when compared to conventional marine fuels.
“With the addition of significant LNG-powered capacity to our fleet, beginning in 2023, we have positioned ZIM as a leader in carbon intensity reduction among global liners,” said Eli Glickman, ZIM’s President and Chief Executive.
“We are pleased to execute this long-term supply agreement with Shell to secure LNG at competitive terms and look forward to partnering with a global industry leader such as Shell as we take an important step to ensure our fuel sourcing is well planned and of the highest quality,” explained Glickman.
“Our growing LNG-powered fleet will enable ZIM to be more carbon and cost efficient, while improving our competitive position, particularly on the strategic Asia to USEC trade, and allowing customers to reduce their carbon footprint,” he stated.
Steve Hill, Executive Vice President of Energy Marketing at Shell, said he congratulated ZIM for introducing the world's first LNG-fuelled Very Large Container Ship (VLCS) fleet to operate on the Asia-North America shipping route.
