JOC Staff | Mar 19, 2013 10:19AM EDT
Zim Integrated Shipping has cancelled contracts for five container vessels and delayed the delivery of a further four ships by a year to 2016.
The Israeli ocean carrier said it also reached agreement to postpone or cancel payments of $235 million due in 2013, relieving it from off-balance sheet obligations amounting to $1.4 billion.
Zim 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.
The carrier, which reports its 2012 results on March 21, said it will book a loss of $133 million in the fourth quarter of last year as a result of the cancellation of the orders.
Under the agreement with the shipyard, believed to be Samsung of Korea, Zim will be refunded $30 million in advance payments for the cancelled vessels.