Danaos has rejected a move by financially strapped Zim Integrated Shipping Services to cut its containership charter hire payments by 35%.
The New York-listed shipowner said Zim had, from the beginning of September, unilaterally started to cut hire payments to shipowners by 35% for a period of three years. Danaos has six boxships on 12 year long charters to Zim and rejected the charter hire cuts.
“Danaos has not accepted this offer, nor acquiesced to this reduction, and it is in discussions with Zim and evaluating the situation,” Danaos said.
Zim also has ships on hire from Costamare, Rickmers Reederei, ER Schiffahrt, Hansa Treuhand, Zodiac Maritime and Ofer Brothers.
Zim has already reached agreement with companies related to Israel Corp to reduce charter rates by an accumulated $150m over the coming years, pending shareholder approval and agreements with other shipowners.
Last week Zim’s parent Israel Corp said shipowners that agreed to charter rate cuts would be offered promissory notes that will be convertible into shares, with the shipping company to be spun off within the next seven years.
The New York-listed shipowner said Zim had, from the beginning of September, unilaterally started to cut hire payments to shipowners by 35% for a period of three years. Danaos has six boxships on 12 year long charters to Zim and rejected the charter hire cuts.
“Danaos has not accepted this offer, nor acquiesced to this reduction, and it is in discussions with Zim and evaluating the situation,” Danaos said.
Zim also has ships on hire from Costamare, Rickmers Reederei, ER Schiffahrt, Hansa Treuhand, Zodiac Maritime and Ofer Brothers.
Zim has already reached agreement with companies related to Israel Corp to reduce charter rates by an accumulated $150m over the coming years, pending shareholder approval and agreements with other shipowners.
Last week Zim’s parent Israel Corp said shipowners that agreed to charter rate cuts would be offered promissory notes that will be convertible into shares, with the shipping company to be spun off within the next seven years.