ZIM signs $1 billion LNG bunkering partnership with Shell

Charleston, SC, USA - June 05, 2022: Hong Kong, a 337-meter container ship owned by ZIM Integrated Shipping Services and flagged to Germany, sails out of Charleston Harbor.

ZIM Integrated Shipping Services Ltd. (ZIM) has signed a 10-year liquefied natural gas (LNG) agreement with Shell.

The deal, valued at more than $1 billion, will supply 10 LNG-fuelled vessels that will be deployed on ZIM’s flagship ZIM Container Service Pacific (ZCP), on the Asia to USEC trade.

These 10 15,000 TEU vessels are expected to enter into service during 2023-2024 and will be transporting goods from China and South Korea to US East Coast and the Caribbean.

Detailing the case behind LNG, ZIM wrote that around 23 per cent of total shipping emissions are from the container segment alone.

LNG is the lowest carbon fuel available at scale today, ZIM adds, providing some 20 per cent fewer greenhouse gas (GHG) emissions when compared to conventional marine fuels.

In addition to GHG emissions reduction, LNG emits minimal Sulphur oxides (SOx) and particulate matter (PM), while significantly reducing nitrogen oxide (NOx) emissions.

ZIM noted that using LNG on the 10 ships is equivalent to having two out of the 10 vessels in the fleet with zero emissions.

READ: Port of Long Beach welcomes LNG-powered containership

The deal with Shell may also cover other trades where ZIM LNG vessels could be deployed.

Eli Glickman, ZIM President & CEO, stated: “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.

“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.”

Steve Hill, Executive Vice President, Energy Marketing at Shell, said: “We would like to congratulate ZIM for introducing the world’s first LNG fuelled Very Large Container Ship (VLCS) fleet to operate on the Asia-North America shipping route.

“We are delighted to collaborate with them on their impressive efforts to reduce emissions in their maritime supply chain.”

Earlier this year ZIM announced a new $400 million deal to charter three 7,000 TEU LNG dual-fuel container vessels.

ZIM crossed the $3 billion net profit mark in its financial results for the year so far.

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