Ernst Russ Orders First New Ships in Years in Partnership with Eimskip
Germany’s Ernst Russ is moving forward with its first newbuild orders in years, an innovative pair of feeder containerships specially designed for Iceland’s Eimskip and the challenges of the North Atlantic. The companies report that the design incorporates future technology while also being specifically designed with customer service needs in mind.
The project builds on a partnership between the companies and provides a financial structure to support the newbuild effort. The joint-venture company ElbFeeder, majority owned by Ernst Russ, has signed the contract to build the two vessels with China Merchants Jin Ling Shipyard (Nanjing), while the board of Eimskip approved a 10-year time-charter.
“This investment will be a milestone for Ernst Russ, marking our first newbuild investment in decades,” said Joseph Schuchmann, Co-CEO and Chief Commercial Officer of Ernst Russ. “We are delighted to be able to implement it together with our long-standing partner Eimskip, who will also function as the initial long-term charterer and thus contributes significantly to the financial viability of the project.”
Due for delivery in the second half of 2028, the vessels will be 185 meters (607 feet) in length with a capacity of 2,280 TEU. They will be the largest vessels in Eimskip’s operation and will be used on the company’s Blue Line sailing between Reykjavik and Rotterdam as well as Teesport in the UK.
“We see great opportunities with the delivery of these new vessels, especially considering the ambitious plans to increase exports of fresh seafood and salmon,” said Vilhelm Mar Thorsteinsson, CEO of Eimskip. He notes that the time-charter in combination with the newbuilding contract enables Eimskip to future-proof its Iceland-Europe trade, while ElbFeer secures long-term revenues.
The new ships use advanced designs suited to the North Atlantic (Eimskip)
The vessels were designed for the demanding conditions of North Atlantic routes in collaboration with the Shanghai Merchant Ship Design and Research Institute (SDARI). Their optimized hull structure has been engineered to enhance hydrodynamic performance, enabling higher service speeds and maneuverability while maintaining fuel efficiency and operational reliability, ideal for the conditions in the North Atlantic.
In addition to the design supporting service speed in an efficient way, they report that the focus is also on optimal energy utilization, including hull design, silicone coating, shore power connection, and other equipment selection. The vessels will also feature a dual-fuel propulsion system, methanol- and LNG-ready.
ElbFeeder currently operates a fleet of seven container vessels. The newbuilds will increase the fleet to nine, and options for two additional vessels were negotiated. Eimskip operates a total fleet of 14 vessels, while Ernst Russ manages a fleet of 26 vessels with a focus on smaller containerships, as well as bulkers and multipurpose vessels.