Eimskip signs agreement for two new container vessels
Eimskip Expands Fleet with New Container Vessels
The Board of Directors of Eimskipafélag Íslands hf. has greenlit new contracts for the construction of two 2,280 TEU container vessels. These ships, coupled with a ten-year time-charter agreement through the German affiliate ElbFeeder, will enhance transportation services between Reykjavík, Iceland, and key locations in Rotterdam and Teesport, UK. This strategic move comes in response to escalating customer demand for fresh cargo transportation, driven by the booming export market for Icelandic seafood and farmed salmon.
New Vessels to Boost Service Capacity
In light of rising transportation needs, Eimskip’s new vessels are designed to significantly improve service capabilities. With a length of 185 meters and a breadth of 29.4 meters, these vessels will be the largest in Eimskip’s fleet, enabling increased capacity for both the Blue Line and Trans-Atlantic routes, which are essential for connecting Iceland with North America. The expansion is prompted by robust demand for fresh exports, particularly in seafood, and advancements in land-based salmon farming in Iceland.
ElbFeeder, majority-owned by Ernst Russ—a shipping company listed on the Frankfurt Stock Exchange—has engaged China Merchants Jin Ling Shipyard (Nanjing) Co. Ltd. for the construction. The expected delivery of these vessels is set for the latter half of 2028, aligning with Eimskip’s growth strategy. Notably, the vessels are engineered with customer service in mind, focusing on speed, reliability, and high maneuverability, which are crucial for navigating the North Atlantic’s challenging conditions.
Environmental considerations are also a priority; the ships will feature a dual-fuel propulsion system that is ready for both methanol and LNG. This aligns with Eimskip’s commitment to sustainability, promoting optimal energy utilization through advanced hull designs and other eco-friendly technologies. Overall, the newbuilds represent a significant investment in the future of Eimskip’s operations, with a projected lease liability of USD 86 million by 2028.
Leadership Insights and Future Prospects
Vilhelm Már Thorsteinsson, CEO of Eimskip, expressed enthusiasm about the fleet renewal initiative, highlighting the potential for expanded exports of fresh seafood and salmon. He emphasized that these vessels are integral to enhancing Trans-Atlantic services, which are a cornerstone of Eimskip’s offerings. Thorsteinsson noted that the focus on operational efficiency and reliability in the vessels’ design will support the company’s environmental goals and adaptability to alternative energy sources in the future.
Joseph Schuchmann, Co-CEO and Chief Commercial Officer of Ernst Russ AG, remarked on the significance of this investment, marking it as their first newbuild initiative in decades. He praised the collaboration with Eimskip, underscoring that the long-term charter agreement ensures the project’s financial sustainability. The partnership between Eimskip and ElbFeeder is set to strengthen, paving the way for future developments in maritime logistics and environmental stewardship.
