ZIM has signed an LNG bunkering agreement with Shell to supply 10 LNG-fuelled vessels for the shipping company’s Container Service Pacific flagship service.
The deal is a ten-year sales and purchase agreement valued at more than US$1 billion.
The 10 vessels, each carrying 15,000 TEU, are expected to enter into service during 2023 and 2024, transporting goods from China and South Korea to the US East Coast and the Caribbean.
Zim calculated that using LNG as a fuel for the ships would be equivalent to having two out of the 10 vessels in the fleet generating zero emissions.
Zim president and CEO Eli Glickman said he believes the addition of LNG-powered capacity has positioned Zim “a leader in carbon intensity reduction” among global liners.
“We … 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,” Mr Glickman said.
“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.”
And Steve Hill, executive vice president, energy marketing at Shell, congratulated the shipping company for introducing the first LNG-fuelled very large container ship fleet to operate on the Asia-North America route.
“We are delighted to collaborate with them on their impressive efforts to reduce emissions in their maritime supply chain,” Mr Hill said.
“Decarbonisation of the shipping industry must begin today, and LNG is a lower emission fuel choice currently available in meaningful volumes, and via liquefied biomethane and liquified e-methane, offers a credible pathway to net zero GHG emissions.”
Zim said the agreement with shell may also cover other trades where Zim’s LNG-powered vessels could be deployed.
