Zim has entered into a $1bn deal with Shell to supply LNG for 10 container ship newbuildings for 10 years.
The New York-listed liner operator plans to deploy the 15,000-teu, LNG-fuelled vessels on its ZIM Container Service Pacific (ZCP) from China and South Korea to the US East Coast and the Caribbean next year.
Zim, which charters in 119 container ships and owns another eight boxships, said it may apply the agreement with Shell to other routes on which it deploys LNG-fuelled boxships.
The Haifa-based company has struck deals to charter 25 LNG-fuelled container ships from Seaspan Corp and three from Eastern Pacific Shipping, according to its website.
The Israeli operator said that about 23% of shipping emissions are from boxships, so these pollutants need to be addressed quickly as global trade keeps getting bigger.
LNG is the lowest carbon fuel available that provides 20% less greenhouse gas emissions than conventional marine fuels, Zim said. This is equivalent to two of the 10 ships emitting zero emissions.
The fuel also releases virtually no SOx and particulate matter, while significantly lowering nitrogen oxide emissions, the company said.
”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,” chief executive Eli Glickman said in a statement.
The deal introduces the world’s first LNG-fueled very large container ship fleet to operate on the Asia-North America shipping route, according to Shell.
“Decarbonisation of the shipping industry must begin today, and LNG is a lower-emission fuel choice currently available in meaningful volumes,” said Steve Hill, Shell’s executive vice-president of energy and marketing.
