ZIM Cancels Orders for Five Vessels from Samsung Heavy

ZIM Integrated Shipping Ltd. reached an agreement with Samsung Heavy Industries of South Korea to immediately cancel orders for 5 vessels and postpone delivery of other vessels to 2016.

The company also has an option to cancel additional 4 orders, pending shipyard’s approval. In addition, ZIM will be refunded for advance payments in the amount of $30 million for the cancelled orders.

The agreement postpones or cancels payments due in 2013, amounting to $235 million. The agreement also releases the company from Off-balance sheet obligations amounting to $1.4 billion. The company is expected to state a loss of $133 million in Q4 2012 as a result of the cancelled vessel orders.

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ZIM Integrated Shipping, March 20, 2013