Zim announced the signing of a ten-year agreement for the purchase of liquefied natural gas (LNG) for the company’s ships in the amount estimated at over a billion dollars, with the company SHELL, to refuel ten container ships powered by liquefied natural gas that will operate on ZIM’s central line, ZIM Container Service Pacific (ZCP), between Asia and the East Coast of the USA. These ten ships, of 15,000 TEU each, are expected to enter service in 2023-2024, and will carry cargo from China and South Korea to the East Coast of the USA and the Caribbean Sea.
About 23% of all carbon emissions in the shipping industry are from the container shipping sector alone, and with the growth in global trade, immediate action is required on this. LNG is the fuel with the lowest carbon emissions available today on a large scale, and it results in a reduction of about 20% in greenhouse gas emissions (GHG) compared to conventional marine fuels. In addition, liquefied natural gas emits almost no sulfur oxides (SOx) and particulate matter (PM), and significantly reduces emissions of nitrogen oxides (NOx).
For Zim, a 20% reduction in greenhouse gas emissions compared to conventional fuel in the 10 ships is equivalent to a rate of zero emissions in two of the ten new ships.
Eli Glickman, president and CEO of Zim, noted that “with the addition of significant transportation capacity fueled by liquid natural gas (LNG) for our fleet, starting in 2023, we have positioned Zim as a leader in reducing carbon emissions among global shipping companies. We are pleased to execute this long-term supply agreement to supply LNG on competitive terms and look forward to partnering with Shell, a global industry leader, as we take an important step to ensure our fuel sourcing is well-planned and of the highest quality. Our growing fleet powered by liquefied natural gas will make it possible to reduce carbon emissions and become more efficient, while improving our competitive position, especially in the strategic trade between Asia and the US East Coast, and will allow customers to reduce their carbon footprint.’
Steve Hill, senior vice president of energy marketing at the company Shell, said: “We would like to congratulate Zim for introducing the world’s first fleet of large container ships (VLCS) powered by liquefied natural gas to operate on the North Asia-North America trade route. We are pleased to partner with them in their impressive efforts to reduce emissions in their maritime supply chain. Decarbonisation of the shipping industry must start today, and liquefied natural gas is a lower carbon footprint fuel choice available today in significant quantities; And through liquid biomethane and carbon-free liquid methane, offers a reliable path to zero emissions.’
The Zim company also stated that the agreement with Shell may also cover other transactions in which it will be possible to include Zim’s liquefied natural gas ships.