SIMIC

ISRAEL-BASED ocean carrier Zim has been cutting its exposure to the freight market by offloading multiple leased vessels, according t New York's FreightWaves.

There have been reports last week of seven early charter terminations by Zim as well as two sublets. Two of the early charter terminations were confirmed by the vessels' owner.



Euroseas said that charters of its 4,250 TEU Rena P and 4,250-TEU Emmanuel P were terminated by mutual consent, with the vessels re-chartered to another ocean carrier starting in August.



Ship brokerages Banchero Costa and Braemar said the vessels are being redelivered by Zim and taken on new charters by Hong-Kong based OOCL.



The two ships - originally named the Seaspan Manila and Seaspan Melbourne - were purchased by Euroseas from Seaspan for a combined price of US$37 million in May 2022, with the charters to Zim attached.



The original charter for the Emmanuel P called for Zim to pay $19,000 per day through March 2025. The charter for the Rena P to Zim was at $20,250 per day through April 2024, then at an index-based rate with a floor of $13,000 and a ceiling of $21,000 per day through February 2025.



The new charters are at $21,000 per day for 20 months plus an option of four additional months.



"These charters are expected to contribute between $2 million and $4 million in additional revenue" versus the terminated charters, said Euroseas CEO Aristides Pittas.



Braemar reported further moves by Zim to reduce its market exposure via the subletting of leased ships.



It said Denmark-based ocean carrier Maersk has chartered the 6,078-TEU Zim Pusan for two to five months at $36,500 per day. The Zim Pusan, previously named the Conti Stockholm, was chartered by Zim in December 2021 for three years at $55,000 per day, according to a report at the time. The Zim Pusan marks the carrier's second re-let in recent weeks, said Braemar.



In addition, Zim had the 4,258-TEU Volans on charter from Costamare through April 2024 at $24,250 per day. According to Braemar, this vessel has just been leased to Germany's Hapag-Lloyd at $21,750 per day for 11-14 months starting in August.



Furthermore, Tradewinds, citing Europeans brokers, reported early this week that the 4,250-TEU Zim Vancouver, Zim Shekou, Zim Yokohama and Zim Qingdao are being sold to the world's largest ocean carrier MSC by current owner Chartworld, releasing Zim from charters of those vessels in the process.