ZIM Integrated Shipping Services has entered into a ten-year marine liquefied natural gas (LNG) sales and purchase agreement, valued at more than $1 billion, with Shell NA LNG, LLC (Shell) to supply ten LNG-fuelled vessels that will be deployed on the ZIM Container Service Pacific, on the Asia to USEC trade.
The 15 000-TEU vessels are expected to enter into service during 2023-2024 and will transport goods from China and South Korea to the US East Coast and the Caribbean.
The container sector is responsible for about 23% of total shipping emissions. LNG is regarded as the lowest carbon fuel available at scale today and provides ~20% less GHG emissions when compared to conventional marine fuels. In addition to GHG emissions reduction, LNG emits virtually no Sulphur oxides (SOx) and particulate matter (PM), while significantly reducing nitrogen oxide (NOx) emissions.
For ZIM, on the basis that LNG emits ~20% less GHG emissions when compared to conventional marine fuels, using LNG on these ten ships is equivalent to having two out of the ten vessels in the fleet with zero emission.
“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," said ZIM president and CEO, Eli Glickman.
This agreement with Shell may also cover other trades where ZIM LNG vessels could be deployed.
