Zim: Korean shipyard approved delays in delivery of four containerships

The company reached an understanding with Hyundai Samho yard, to delay the delivery of four TEU 10,000 container vessels by up to five years. ZIM CEO: we will see a gradual recovery in 2011 at the latest
 
Zim integrated shipping company Ltd. said last week it reached an understanding with a Korean shipyard, Hyundai Samho yard, to delay the delivery of four TEU 10,000 container vessels by up to five years.
 
In a press release Zim said that the delivery of the four container vessels from the Hyundai Samho yard, originally due in 2010, has been postponed until 2014 or 2015. The Israeli carrier reached earlier a similar understanding with another Korean shipyard to postpone delivery of nine 12,600-TEU ships, also due next year, for a similar period.
 
Zim CEO Rafi Danieli said the agreements with the Korean shipyards “mark a major step” in completing its financial recovery program and will enhance its cash flow by deferring investments of up to US$2 billion.
 
Danieli said in a press release that “This understanding reflects the shipyards’ clear expression of confidence in Zim’s recovery plan and in the company’s long term commercial success”.
 
Danieli added that “The year 2009 is an unusual year in terms of demand for shipping services however ,industry experts worldwide predict that by 2014-2015 the industry will be past the current crisis and the market will have recovered. Based on these 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”.
 
Zim, whichmade a first half loss of US$350 million, said it expects to achieve an operating profit of around US$100 million in 2011, growing to approximately US$350 million in 2012 and some US$500 million in 2013.
 
“We believe we will see a gradual recovery in 2011 at the latest, getting us back to profitability and positive returns for our shareholders thereafter,” Danieli said.