Zim wins Hyundai nod on 5-year delay on four mega-ships

KOREA's Hyundai Samho shipyard has agreed to postpone the delivery of four 10,000-TEU-containerships to Israel's Zim shipping line from next year to 2014 and 2015.

Zim negotiated a similar deal with another Korean shipyard for nine 12,600-TEU ships to be delivered next year, reports said Newark's Journal of Commerce. Zim reportedly capitalised on the high reputation of its parent, the Ofer Group, its biggest shareholder.

Postponements will help enhance Zim cash flow by deferring investments of up to US$2 billion, and are a part of restructuring efforts of the 17th largest carrier that faces bleak immediate prospects and a huge order book.

"We believe we will see a gradual recovery in 2011 at the latest, getting us back to profitability. Based on estimates, we look forward to strong market conditions that will enable Zim to grow, prosper and benefit from the new, efficient fleet at the right time," said Zim CEO Rafi Danieli.

Zim's current order of 29 ships totalling 244,604 TEU, accounts for 90.2 per cent of its existing fleet capacity according to Paris-based ASX Alphaliner, and is a part of its fleet expansion plan over the next two years.

With the restructuring, Zim expects to make an operating profit of US$100 million in 2011, which is would increase to $350 million in 2012 and almost $500 million in 2013, having suffered a loss of $350 million in the first half of this year.

Among other steps, Zim has unilaterally cut down charter fees on 57 ships of its chartered vessels by 35 per cent for three years beginning September 1, Greek shipowner Danaos was quoted as saying in the report.

The carrier also received $100 million from Israel Corp in August according to a statement issued by Israel Corp to told Zim's bondholders. Depending on the approval from bondholders, it can receive a further $250 million next month to settle its debts, the report said.

(Source: www.schednet.com)