Wednesday, April 24, 2019

New Container Carriers Ordered as Vessel Sharing Agreement Approved

Larger Environmentally Friendly Ships Can Boost International Trade
Shipping News Feature
ICELAND – GREENLAND – The Icelandic Competition Authority has approved exemption for the Vessel Sharing Agreement (VSA) between Icelandic shipping company, Eimskip and the national carrier of Greenland, Royal Arctic Line. The cooperation is subject to certain conditions made by the Icelandic Competition Authority.

As part of the cooperation, three 2,150 TEU container vessels are being built in China with expected delivery late 2019. Two vessel are being built for Eimskip and one for Royal Arctic Line. The vessels will be used in weekly services between Greenland, Iceland, Faroe Island and Scandinavia.

The ships will be the largest container vessels that Eimskip has had in its service and are designed and built for the conditions in the North Atlantic, in accordance with the IMO Polar Code. With the cooperation and operation of larger vessels comes economies of scale and increased fuel efficiency. Subsequently with the delivery of the new, more environmentally friendly vessels, Eimskip foresees the sale of its existing ships, Goðafoss and Laxfoss.

The cooperation means that Royal Arctic Line will be able to offer transportation services to the Icelandic market. Greenland will be then connected to Eimskip‘s international sailing system with its weekly services that the pair say creates opportunities for direct connections to and from Greenland with international markets. Vilhelm Þorsteinsson, CEO Eimskip commented:

"We are pleased to have the formal approval from the Icelandic Competition Authority for the cooperation between Eimskip and Royal Arctic Line after several years of preparation. The cooperation creates opportunities for a more efficient sailing system for Eimskip as well as opening new sailing routes to and from Greenland enabling our customers to increase business with Greenland. It’s also important for Eimskip to renew its fleet with more efficient and environmentally friendly vessels, and is part of the company‘s journey towards increased profitability.”

Photo: Left - Vilhelm Þorsteinsson, CEO Eimskip, Right - Verner Hammeken, CEO Royal Arctic Line