CONTAINER shipping line Zim has purchased seven second-hand vessels in October.
The vessels, built between 2007 and 2009, include five 4250-TEU vessels and two 1100-TEU vessels.
The company bought the ships in several separate transactions for a total of about US$320 million.
Zim president and CEO Eli Glickman said since going public, the company’s focus has been to allocate capital to strengthen its commercial prospects and to create long-term value.
“With the opportunistic acquisition of these much-needed vessels, we have drawn on our strong cash position and our agile approach to maintain and expand our operating fleet to meet growing customer demand, while remaining committed to delivering industry superior profitability,” Mr Glickman said.
“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.”
Zim launched an IPO on the New York Stock Exchange in January. Shares started trading at about US$11.50 when it launched, and today they are trading at US$49.42.
In April, the company launched a new trans-Tasman service with two 1100-TEU vessels calling Melbourne, Sydney Auckland and Tauranga.
According to Alphaliner, Zim is the 11th-biggest container shipping line in the world by TEU capacity. Its total carrying capacity is 397,678 TEU, accounting for about 1.6% of the world’s total TEU capacity.
Nearly all of Zim’s vessels are chartered, with Alphaliner reporting that only one of its 103 ships is owned. Zim has 25 vessels on its orderbook with a combined capacity of 255,000 TEU, or 64.1% of its existing capacity.
