Zim Integrated Shipping services Ltd. has cancelled contracts for five container vessels and delayed the delivery of a further four container ships by a year to 2016.
The Israeli ocean carrier said it also reached an agreement to postpone or cancel payments of US$235 million due in 2013, relieving it from off-balance sheet obligations amounting to US$1.4 billion.
The company is expected to state a loss of $133 million in Q4 2012 as a result of the cancellations of vessels’ orders.
Zim Integrated Shipping services noted that it also has an option to cancel four additional orders, pending the agreement of the shipyards. It did not give details of the cancelled vessels and those whose delivery is being delayed. Under the agreement with the shipyard, believed to be Samsung of Korea, Zim will be refunded US$30 million in advance payments for the cancelled vessels.