Zim downsizing its container ship fleet as demand disappoints

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Zim downsizing its container ship fleet as demand disappoints

FreightWaves2023-07-26

Container shipping line Zim is giving back some of its leased ships. (Photo: Shutterstock/MagioreStock) Israel-based ocean carrier Zim (NYSE: ZIM) is cutting its exposure to the freight market by ...

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JC1211
·2023-07-27
Not downsizing. They return the chartered fleet because they bought new ones and own the fleet.
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(Photo: Shutterstock/MagioreStock)\n \n\nIsrael-based ocean carrier Zim (NYSE: ZIM) is cutting its exposure to the freight market by ...</p>\n\n<a href=\"https://finance.yahoo.com/news/zim-downsizing-container-ship-fleet-203201270.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Zim downsizing its container ship fleet as demand disappoints</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nZim downsizing its container ship fleet as demand disappoints\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-26 04:32 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/zim-downsizing-container-ship-fleet-203201270.html><strong>FreightWaves</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Container shipping line Zim is giving back some of its leased ships. (Photo: Shutterstock/MagioreStock)\n \n\nIsrael-based ocean carrier Zim (NYSE: ZIM) is cutting its exposure to the freight market by ...</p>\n\n<a href=\"https://finance.yahoo.com/news/zim-downsizing-container-ship-fleet-203201270.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4588","symbol_name":"碎股","start_time":0,"source_url":"https://finance.yahoo.com/news/zim-downsizing-container-ship-fleet-203201270.html","article_id":"2354405342","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/FulrRCstWhourJ5haVB9tg--~B/aD02NzU7dz0xMjAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/freightwaves_373/dcce61e7ea10438899a49d596fe90843"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2354405342","pubTimestamp":1690317121,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Israel-based ocean carrier Zim  is cutting its exposure to the freight market by offloading multiple leased vessels. 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Two of the early charter terminations were confirmed by the vessels’ owner.\nCharters terminated early for Euroseas duo\nEuroseas (NASDAQ: ESEA) said that charters of its 4,250 twenty-foot equivalent unit Rena P and 4,250-TEU Emmanuel P were terminated by mutual consent, with the vessels rechartered to another ocean carrier starting in August.\nShip brokerages Banchero Costa and Braemar said the vessels are being redelivered by Zim and taken on new charters by Hong-Kong based OOCL.\nThe two ships — originally named the Seaspan Manila and Seaspan Melbourne — were purchased by Euroseas from Seaspan for a combined price of $37 million in May 2022, with the charters to Zim attached.\nThe 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.\nThe new charters are at $21,000 per day for 20 months plus an option of four additional months.\n“These charters are expected to contribute between $2 million and $4 million in additional revenue” versus the terminated charters, said Euroseas CEO Aristides Pittas.\nThe Rena P and Emmanuel P handoff was not without hiccups, according to Braemar. “After having previously failed [to close] the deal, OOCL returned to the market and refixed [the ships]. Consequently, the owners then agreed to terminate the existing charter with Zim.”\nAsked whether any termination fees were involved, a Euroseas spokesperson told FreightWaves: “There was no compensation since Euroseas chartered the vessels at higher rates. The termination was agreed, not forced. It would only occur if Euroseas managed to recharter the vessels. Otherwise, there would have been no termination.”\nOther moves by Zim to cut market exposure\nBraemar reported further moves by Zim to reduce its market exposure via the subletting of leased ships.\nIt 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 reports at the time. The Zim Pusan marks the carrier’s second relet in recent weeks, said Braemar.\nIn addition, Zim had the 4,258-TEU Volans on charter from Costamare (NYSE: CMRE) 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. \nTradewinds — citing Europeans brokers — reported Monday that the 4,250-TEU Zim Vancouver, Zim Shekou, Zim Yokohama and Zim Qingdao are being sold to the world’s largest ocean carrier — Switzerland’s MSC — by current owner Chartworld, releasing Zim from charters of those vessels in the process.\nCharter rates weaken but still top pre-COVID levels\nCharter rates had held up surprisingly well until recently, outperforming the freight market.\n“Time charter rates as well as periods [charter durations] have obviously come off significantly in recent months, which is triggering some new demand in the market,” said Braemar this week. Meanwhile, new supply is being created as operators like Zim market surplus tonnage.\nThe Harpex index, which gauges charter rates for vessels 8,500 TEUs and smaller, is currently at 1,121 points. This is down 10% from early June, however, it is still 76% above index levels at this time in 2019, pre-COVID.\nZim vows to ‘actively manage and rationalize’ fleet\nZim is the world’s 10th-largest ocean carrier. Unlike other shipping lines, it leases over 90% of its fleet; most carriers own around half their fleet and lease the remainder.\nAs of June, Zim operated 138 container ships, with 17 up for charter renewals this year and 27 next year, compared to the deliveries of 40 chartered newbuildings during the same period. In addition to letting charters roll off on schedule, early terminations and sublets allow Zim to offset newbuilding capacity and the effect of weaker-than-expected demand.\nZim slashed its earnings guidance for full-year 2023 on July 12. “We no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed,” said CEO Eli Glickman.\n“During this downturn, we will continue to actively manage and rationalize our fleet and services to maximize our cash position,” he said.\nClick for more articles by Greg Miller \nRelated articles:\n\nTrans-Pacific shipping rates rise as carriers make capacity cuts\nQ2 container line earnings could surprise to the upside\nContainer shipping stocks outperform despite market gloom\nUS containerized imports still outpacing pre-COVID levels\nContainer shipping trilemma: Weak rates, new ships, pricey charters\nShipping faces fallout as China’s post-COVID rebound falls flat\nContainer shipping divide: Cargo rates weaken, ship rents ‘robust’\nShipping line Zim hammered by high spot-rate exposure\n\nThe post Zim downsizing its container ship fleet as demand disappoints appeared first on FreightWaves.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":202180477120640,"gmtCreate":1690393994621,"gmtModify":1690393998794,"author":{"id":"3577332614676067","authorId":"3577332614676067","name":"JC1211","avatar":"https://static.tigerbbs.com/77223f4b37d2ebcfc715638e5be48555","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"3577332614676067","idStr":"3577332614676067"},"htmlText":"Not downsizing. They return the chartered fleet because they bought new ones and own the fleet.","listText":"Not downsizing. They return the chartered fleet because they bought new ones and own the fleet.","text":"Not downsizing. They return the chartered fleet because they bought new ones and own the fleet.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/202180477120640","repostId":2354405342,"repostType":2,"repost":{"id":"2354405342","pubTimestamp":1690317121,"share":"https://ttm.financial/m/news/2354405342?lang=&edition=fundamental","pubTime":"2023-07-26 04:32","market":"us","language":"en","title":"Zim downsizing its container ship fleet as demand disappoints","url":"https://stock-news.laohu8.com/highlight/detail?id=2354405342","media":"FreightWaves","summary":"Israel-based ocean carrier Zim  is cutting its exposure to the freight market by offloading multiple leased vessels. News of its divestment strategy was first reported in late June and fresh details are now emerging.There have been reports this 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 twenty-foot equivalent unit Rena P and 4,250-TEU Emmanuel P were terminated by mutual consent, with the vessels rechartered 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.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","content":"<html><body><figure>\n<img height=\"2700\" src=\"https://s.yimg.com/uu/api/res/1.2/ON8pgRyqLq0We93SVI1ofQ--/cT03NTthcHBpZD15dmlkZW9mZWVkczs-/https://media.zenfs.com/en/freightwaves_373/61cdb19b08b6e8cd370af33127297135\" width=\"4800\"/>\n<figcaption>\n  Container shipping line Zim is giving back some of its leased ships. (Photo: Shutterstock/MagioreStock)\n </figcaption>\n</figure>\n<p>Israel-based ocean carrier Zim (NYSE: ZIM) is cutting its exposure to the freight market by offloading multiple leased vessels. News of its divestment strategy was first reported in late June and fresh details are now emerging.</p>\n<p>There have been reports this 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.</p>\n<h2>Charters terminated early for Euroseas duo</h2>\n<p>Euroseas (NASDAQ: ESEA) said that charters of its 4,250 twenty-foot equivalent unit Rena P and 4,250-TEU Emmanuel P were terminated by mutual consent, with the vessels rechartered to another ocean carrier starting in August.</p>\n<p>Ship brokerages Banchero Costa and Braemar said the vessels are being redelivered by Zim and taken on new charters by Hong-Kong based OOCL.</p>\n<p>The two ships — originally named the Seaspan Manila and Seaspan Melbourne — were purchased by Euroseas from Seaspan for a combined price of $37 million in May 2022, with the charters to Zim attached.</p>\n<p>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.</p>\n<p>The new charters are at $21,000 per day for 20 months plus an option of four additional months.</p>\n<p>“These charters are expected to contribute between $2 million and $4 million in additional revenue” versus the terminated charters, said Euroseas CEO Aristides Pittas.</p>\n<p>The Rena P and Emmanuel P handoff was not without hiccups, according to Braemar. “After having previously failed [to close] the deal, OOCL returned to the market and refixed [the ships]. Consequently, the owners then agreed to terminate the existing charter with Zim.”</p>\n<p>Asked whether any termination fees were involved, a Euroseas spokesperson told FreightWaves: “There was no compensation since Euroseas chartered the vessels at higher rates. The termination was agreed, not forced. It would only occur if Euroseas managed to recharter the vessels. Otherwise, there would have been no termination.”</p>\n<h2>Other moves by Zim to cut market exposure</h2>\n<p>Braemar reported further moves by Zim to reduce its market exposure via the subletting of leased ships.</p>\n<p>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 reports at the time. The Zim Pusan marks the carrier’s second relet in recent weeks, said Braemar.</p>\n<p>In addition, Zim had the 4,258-TEU Volans on charter from <a href=\"https://laohu8.com/S/CMRE\">Costamare</a> (NYSE: CMRE) 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. </p>\n<p>Tradewinds — citing Europeans brokers — reported Monday that the 4,250-TEU Zim Vancouver, Zim Shekou, Zim Yokohama and Zim Qingdao are being sold to the world’s largest ocean carrier — Switzerland’s MSC — by current owner Chartworld, releasing Zim from charters of those vessels in the process.</p>\n<h2>Charter rates weaken but still top pre-COVID levels</h2>\n<p>Charter rates had held up surprisingly well until recently, outperforming the freight market.</p>\n<p>“Time charter rates as well as periods [charter durations] have obviously come off significantly in recent months, which is triggering some new demand in the market,” said Braemar this week. Meanwhile, new supply is being created as operators like Zim market surplus tonnage.</p>\n<p>The Harpex index, which gauges charter rates for vessels 8,500 TEUs and smaller, is currently at 1,121 points. This is down 10% from early June, however, it is still 76% above index levels at this time in 2019, pre-COVID.</p>\n<h2>Zim vows to ‘actively manage and rationalize’ fleet</h2>\n<p>Zim is the world’s 10th-largest ocean carrier. Unlike other shipping lines, it leases over 90% of its fleet; most carriers own around half their fleet and lease the remainder.</p>\n<p>As of June, Zim operated 138 container ships, with 17 up for charter renewals this year and 27 next year, compared to the deliveries of 40 chartered newbuildings during the same period. In addition to letting charters roll off on schedule, early terminations and sublets allow Zim to offset newbuilding capacity and the effect of weaker-than-expected demand.</p>\n<p>Zim slashed its earnings guidance for full-year 2023 on July 12. “We no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed,” said CEO Eli Glickman.</p>\n<p>“During this downturn, we will continue to actively manage and rationalize our fleet and services to maximize our cash position,” he said.</p>\n<p><strong><em>Click for more articles by Greg Miller</em></strong> </p>\n<h4><em>Related articles:</em></h4>\n<ul>\n<li><em>Trans-Pacific shipping rates rise as carriers make capacity cuts</em></li>\n<li><em>Q2 container line earnings could surprise to the upside</em></li>\n<li><em>Container shipping stocks outperform despite market gloom</em></li>\n<li><em>US containerized imports still outpacing pre-COVID levels</em></li>\n<li><em>Container shipping trilemma: Weak rates, new ships, pricey charters</em></li>\n<li><em>Shipping faces fallout as China’s post-COVID rebound falls flat</em></li>\n<li><em>Container shipping divide: Cargo rates weaken, ship rents ‘robust’</em></li>\n<li><em>Shipping line Zim hammered by high spot-rate exposure</em></li>\n</ul>\n<p>The post Zim downsizing its container ship fleet as demand disappoints appeared first on FreightWaves.</p></body></html>","source":"yahoofinance","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Zim downsizing its container ship fleet as demand disappoints</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nZim downsizing its container ship fleet as demand disappoints\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-07-26 04:32 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/zim-downsizing-container-ship-fleet-203201270.html><strong>FreightWaves</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Container shipping line Zim is giving back some of its leased ships. (Photo: Shutterstock/MagioreStock)\n \n\nIsrael-based ocean carrier Zim (NYSE: ZIM) is cutting its exposure to the freight market by ...</p>\n\n<a href=\"https://finance.yahoo.com/news/zim-downsizing-container-ship-fleet-203201270.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"https://s.yimg.com/uu/api/res/1.2/FulrRCstWhourJ5haVB9tg--~B/aD02NzU7dz0xMjAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/freightwaves_373/dcce61e7ea10438899a49d596fe90843","relate_stocks":{"BK4585":"ETF&股票定投概念","CMRE":"Costamare","BK4588":"碎股","BK4021":"海运","ZIM":"以星航运","ESEA":"Euroseas Ltd"},"source_url":"https://finance.yahoo.com/news/zim-downsizing-container-ship-fleet-203201270.html","is_english":true,"share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","article_id":"2354405342","content_text":"Container shipping line Zim is giving back some of its leased ships. (Photo: Shutterstock/MagioreStock)\n \n\nIsrael-based ocean carrier Zim (NYSE: ZIM) is cutting its exposure to the freight market by offloading multiple leased vessels. News of its divestment strategy was first reported in late June and fresh details are now emerging.\nThere have been reports this 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.\nCharters terminated early for Euroseas duo\nEuroseas (NASDAQ: ESEA) said that charters of its 4,250 twenty-foot equivalent unit Rena P and 4,250-TEU Emmanuel P were terminated by mutual consent, with the vessels rechartered to another ocean carrier starting in August.\nShip brokerages Banchero Costa and Braemar said the vessels are being redelivered by Zim and taken on new charters by Hong-Kong based OOCL.\nThe two ships — originally named the Seaspan Manila and Seaspan Melbourne — were purchased by Euroseas from Seaspan for a combined price of $37 million in May 2022, with the charters to Zim attached.\nThe 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.\nThe new charters are at $21,000 per day for 20 months plus an option of four additional months.\n“These charters are expected to contribute between $2 million and $4 million in additional revenue” versus the terminated charters, said Euroseas CEO Aristides Pittas.\nThe Rena P and Emmanuel P handoff was not without hiccups, according to Braemar. “After having previously failed [to close] the deal, OOCL returned to the market and refixed [the ships]. Consequently, the owners then agreed to terminate the existing charter with Zim.”\nAsked whether any termination fees were involved, a Euroseas spokesperson told FreightWaves: “There was no compensation since Euroseas chartered the vessels at higher rates. The termination was agreed, not forced. It would only occur if Euroseas managed to recharter the vessels. Otherwise, there would have been no termination.”\nOther moves by Zim to cut market exposure\nBraemar reported further moves by Zim to reduce its market exposure via the subletting of leased ships.\nIt 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 reports at the time. The Zim Pusan marks the carrier’s second relet in recent weeks, said Braemar.\nIn addition, Zim had the 4,258-TEU Volans on charter from Costamare (NYSE: CMRE) 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. \nTradewinds — citing Europeans brokers — reported Monday that the 4,250-TEU Zim Vancouver, Zim Shekou, Zim Yokohama and Zim Qingdao are being sold to the world’s largest ocean carrier — Switzerland’s MSC — by current owner Chartworld, releasing Zim from charters of those vessels in the process.\nCharter rates weaken but still top pre-COVID levels\nCharter rates had held up surprisingly well until recently, outperforming the freight market.\n“Time charter rates as well as periods [charter durations] have obviously come off significantly in recent months, which is triggering some new demand in the market,” said Braemar this week. Meanwhile, new supply is being created as operators like Zim market surplus tonnage.\nThe Harpex index, which gauges charter rates for vessels 8,500 TEUs and smaller, is currently at 1,121 points. This is down 10% from early June, however, it is still 76% above index levels at this time in 2019, pre-COVID.\nZim vows to ‘actively manage and rationalize’ fleet\nZim is the world’s 10th-largest ocean carrier. Unlike other shipping lines, it leases over 90% of its fleet; most carriers own around half their fleet and lease the remainder.\nAs of June, Zim operated 138 container ships, with 17 up for charter renewals this year and 27 next year, compared to the deliveries of 40 chartered newbuildings during the same period. In addition to letting charters roll off on schedule, early terminations and sublets allow Zim to offset newbuilding capacity and the effect of weaker-than-expected demand.\nZim slashed its earnings guidance for full-year 2023 on July 12. “We no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed,” said CEO Eli Glickman.\n“During this downturn, we will continue to actively manage and rationalize our fleet and services to maximize our cash position,” he said.\nClick for more articles by Greg Miller \nRelated articles:\n\nTrans-Pacific shipping rates rise as carriers make capacity cuts\nQ2 container line earnings could surprise to the upside\nContainer shipping stocks outperform despite market gloom\nUS containerized imports still outpacing pre-COVID levels\nContainer shipping trilemma: Weak rates, new ships, pricey charters\nShipping faces fallout as China’s post-COVID rebound falls flat\nContainer shipping divide: Cargo rates weaken, ship rents ‘robust’\nShipping line Zim hammered by high spot-rate exposure\n\nThe post Zim downsizing its container ship fleet as demand disappoints appeared first on FreightWaves.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":0,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}