After the recent postponement agreement with Hyundai Samho shipyard and with the good reputation of its parent company, Ofer Group, there are signs that Israeli Zim Shipping is in better financial shape.
Zim's current order of 29 ships totalling 244,604 TEU, accounts for 90.2 per cent of its existing fleet capacity according to Paris-based ASX Alphaliner, and is a part of its fleet expansion plan over the next two years.
With the restructuring, Zim expects to make an operating profit of US$100 million in 2011, which is would increase to US$350 million in 2012 and almost US$500 million in 2013, having suffered a loss of US$350 million in the first half of this year.
Among other steps, Zim has unilaterally cut down charter fees on 57 of its chartered vessels by 35 percent, for the three years beginning September 1 2009, Greek shipowner Danaos was quoted as saying in the report.
The carrier also received US$100 million from Israel Corp in August according to a statement issued by Israel Corp to Zim bondholders. Depending on the approval from bondholders, it can receive a further $250 million next month to settle its debts, the report said.
Tracey Jia
