Danaos: Zim unilaterally cuts charter payments by 35%

Danaos leases six containerships to Zim on 12-year time charters. Each has a capacity of 4,253 20-foot equivalent units and earns Danaos nearly $23,000 a day
 
Greek shipowner and charterer Danaos Corp. said last Tuesday it has not agreed to a deal with Zim, to reduce charter rates on the six containerships Zim is leasing. In a press release Danaos said that: “Zim Integrated Shipping Services Ltd. has stated thatit is reducing, unilaterally, all of its long-term charter hire payments to ship owners by 35% commencing Sept. 1, 2009 and for an indicated period of three years”.
 
Danaos leases six containerships to Zim on 12-year time charters, the company said, adding that it has not accepted Zim terms, which are that it will not pay for three years.
 
Danaos, which owns a fleetof 41 container ships has six box ships built in 2008 and 2009 under 12-year time charter agreements with Zim. Each has a capacity of 4,253 20-foot equivalent units and earns Danaos nearly $23,000 a day.
 
The vessels,which are due to come off hire between May 2020 and May 2021, generated revenue of $10.4 million in the second quarter ended June 30.
 
Athens-based Danaos said Zim had stated it was unilaterally reducing all of its long term charter payments to ship-owners by 35 percent from Sept. 1 for an indicated period of three years.
 
Zim, the world's seventeenth largest ocean carrier, has 57 ships of 144,750 TEUs on charter from leading ship-owners, including Germany's Rickmers Reederei, Hansa Treuhand and ER Schiffahrt, as well as Costamare of Greece, Zodiac Maritime and Ofer Brothers.
 
Zim has already reached agreement with companies related to Israel Corp to reduce charter rates by an accumulated $150m over the coming years, pending shareholder approval and agreements with other shipowners.