Ernst Russ and Eimskip team up for boxship newbuilds in China
Ernst Russ and Eimskip Expand Fleet with New Vessels
German shipping company Ernst Russ has partnered with Icelandic carrier Eimskip to enhance their joint venture, ElbFeeder, by acquiring new container ships. The venture has secured a contract with China Merchants Jin Ling Shipyard for the construction of two 2,280 teu container vessels, with options for two additional ships. Scheduled for delivery in the latter half of 2028, these new additions will increase ElbFeeder’s fleet to nine ships, excluding options.
Significant Fleet Expansion Planned
The newly ordered vessels will play a critical role in Eimskip’s Blue Line service, which connects Reykjavík, Rotterdam, and Teesport. Under a 10-year charter agreement, these ships will become the largest units in Eimskip’s fleet. Designed specifically for operations in the North Atlantic, the new ships will feature advanced technologies, including optimized hulls, silicone coatings, shore power capabilities, and dual-fuel engines compatible with both methanol and LNG.
The financing for this ambitious project will come from a combination of equity and debt within the ElbFeeder framework. For Eimskip, the lease liability associated with the 10-year charter is projected to reach approximately $86 million by 2028. This financial commitment will be partly balanced by the expiration of current leases for vessels in the Blue Line service.
Eimskip’s CEO, Vilhelm Már Thorsteinsson, emphasized that this order is vital for supporting the company’s growing seafood exports and for modernizing its fleet. Meanwhile, Ernst Russ’s co-CEO, Joseph Schuchmann, hailed this development as a landmark achievement, marking the German shipowner’s first newbuild order in decades. The collaboration underscores a significant step forward for both companies in enhancing their operational capabilities and market presence.
