ZIM to compensate CSBC for canceled orders for six container ships

Will pay Taiwanese shipbuilder $28.9 million in compensation for the cancellation of the US$220.4 million order
 
Following the cancellation of six TEU1,700 capacity containerships which were ordered in 2007 and were scheduled for delivery in 2010-11, ZIM Integrated Services Ltd. Israel Corp. announced it will pay Taiwanese shipbuilder CSBC Corporation $28.9 million in compensation for the cancellation of the US$220.4 million order.
 
Within the framework of the building contract Zim transferred its rights and obligations in the CSBC contract to Ofer Shipping, and signed a 12-year lease contract for the ships at a cost of US$17,500 per day per ship.
 
Zim will bear most of the cost of the compensation payment to CSBC.
 
The building contract included a US$38.6 millioncancellation clause, amounting to 17.5% of the total amount of the contract. Zim is paying 75% of this amount, or US$28.9 million, and Ofer Shipping is paying the US$9.6 million balance.