ZIM Announces New Chartering Agreement for Thirteen Vessels

Rhea-AI Summary

ZIM Integrated Shipping Services (NYSE: ZIM) has entered into a charter agreement with Navios Maritime Partners for thirteen container vessels valued at approximately $870 million. This includes five secondhand vessels, delivering in early 2022, and eight newbuilds set to arrive between 2023 and 2024, enhancing ZIM's operational capacity. The secondhand vessels will be chartered for up to 4.5 years and the newbuilds for up to 5.3 years. CEO Eli Glickman emphasized the strategic importance of this deal in meeting growing demand.

Positive

• Charter agreement valued at approximately $870 million enhances operational capacity.
• Acquisition of five secondhand and eight newbuild vessels meets growing global demand.
• Charters secured for up to 4.5 years (secondhand) and 5.3 years (newbuilds), ensuring long-term support.

Negative

• None.

HAIFA, Israel, Feb. 10, 2022 /PRNewswire/ -- ZIM Integrated Shipping Services (NYSE: ZIM) announced today a new charter agreement with Navios Maritime Partners L.P., according to which ZIM will charter a total of thirteen container vessels comprising five secondhand vessels and eight newbuild vessels for total charter hire consideration of approximately $870 million. The five secondhand vessels which range from 3,500-4,360 TEUs and are expected to be delivered in the first and second quarters of 2022, will be deployed across ZIM's global network. The eight 5,300 TEU wide beam newbuilds scheduled to be delivered during the third quarter of 2023 through the fourth quarter of 2024, are expected to be deployed in trades between Asia and Africa. The charter duration of the secondhand vessels is up to 4.5 years, while the charter duration of the newbuild vessels is up to 5.3 years.

Eli Glickman, ZIM President & CEO, stated: "With this latest chartering transaction, we continue to execute on our strategy of chartering-in highly versatile vessels to best serve our customers and meet significant and sustained demand across our global network. This transaction enhances our position as a global-niche operator, contributing immediate much needed tonnage in required sizes, as well as securing additional high-quality and cost-effective capacity to meet growing demand in the future. Looking ahead, we expect to continue to capitalize on opportunities to further strengthen our commercial prospects and support our operational agility, while maintaining our prudent capital allocation strategy to maximize shareholder value."

About ZIM

ZIM (NYSE: ZIM) is a global container liner shipping company with leadership positions in the markets in which it operates. Founded in Israel in 1945, ZIM is a veteran shipping liner, with decades of experience providing customers with innovative seaborne transportation and logistics services, a reputation for industry-leading transit times, schedule reliability and service excellence. Additional information about ZIM is available at www.ZIM.com.

Forward Looking Statements

This press release contains certain forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including forward-looking statements regarding ZIM's ability to meet growing market demand and to provide reliable service to customers, as well as assessment as to the growth trend of the market. These risks and uncertainties include, but are not limited to: the possibility that ZIM will not be able to meet demand from customers, the risk that the growth trend of the market will not continue or be slower than expected; the risk that current trends in the chartering market will weaken or reverse, and other factors detailed from time to time in ZIM's periodic reports and filings with the Securities and Exchange Commission ("SEC"), including ZIM's annual report on Form 20-F filed with the SEC on March 22, 2021. ZIM expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise. ZIM does not make any prediction or statement about the performance of its securities.

ZIM Contacts

Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-865-2520
shats.avner@zim.com 

Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com 

Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com

View original content:https://www.prnewswire.com/news-releases/zim-announces-new-chartering-agreement-for-thirteen-vessels-301479750.html

SOURCE ZIM Integrated Shipping Services Ltd.

FAQ

What is the significance of ZIM's new charter agreement with Navios?

ZIM's charter agreement, valued at approximately $870 million, will enhance its operational capacity with thirteen new vessels.

When will ZIM receive the newbuild vessels from Navios?

ZIM's eight newbuild vessels are scheduled for delivery between the third quarter of 2023 and the fourth quarter of 2024.

How long will ZIM be chartering the secondhand vessels?

The secondhand vessels will be chartered for a duration of up to 4.5 years.

What types of vessels are included in ZIM's charter agreement?

The agreement includes five secondhand vessels and eight newbuild vessels, ranging from 3,500 to 5,300 TEUs.

What markets will ZIM's newbuild vessels serve?

The newbuild vessels are expected to operate in trades between Asia and Africa.