Eimskip’s Newbuildings to Be 20% Cheaper

In 2011 Eimskip and the shipyard Rongcheng Shenfei in China made an agreement on building two container vessels. The vessels’ size is 875 TEU, each containing plugs for 230 reefer containers. Deadweight of the each vessel is approximately 12 thousand tons. The vessels are 140.7 meter- long and 23.2 meter- wide.

Originally the vessels were expected to be delivered in 2013. Based on an amendment to the agreement with the shipyard the delivery of the vessels is expected in the first half of 2014. Besides negotiating the delay, Eimskip has negotiated a reduction of the vessels’ purchase price by about 20% which equals to a reduction of USD 10 million in total.

Eimskip has already paid USD 26 million, i.e., about 70% of the altered purchase price of the vessels. The investment is financed with equity and with a bridge loan for the building period from an Icelandic bank and with long term financing from a foreign bank.

In March 2013 Eimskip introduced material changes in its sailing schedule. The delay of the vessels’ delivery time will neither affect these changes nor service to the company’s customers. The delay will however extend chartering of vessels longer than earlier expected.

Press Release, April 30, 2013