HD Hyundai Mipo, a unit of South Korea’s largest shipbuilding group HD Hyundai, announced in a statement that it has canceled the construction contract of five container ships worth 414.5 billion won (about 311 million U.S. dollars) at the request of the shipowner.
The news was also confirmed by the ship’s owner, Zephyr & Boree of France. The company said the order for five container ships signed with HD Hyundai Mipo has now been terminated due to financing issues.
It is understood that the two sides signed a contract for the construction of five 1300TEU container ships on May 19, 2023. The all the ships would be powered by methanol and sail, with an order value of about $311 million and a price of about $62.2 million each, which is twice the price of a conventional fuel container ship of the same size at that time.
Zephyr & Boree previously revealed that this type of container ship is a zero-carbon ship, the project has been brewing for many years, and the new ship is equipped with methanol engines and sail propulsion system, which is the first in the world. The new ships were originally scheduled to be delivered between late 2025 and mid-2026. Zephyr & Boree said it had signed long-term contracts with several French shippers.
Shortly after the order was made public, maritime analyst Alpha Liner predicted that Zephyr & Boree would soon place an additional order for five similar-sized container ships, according to iMarine. However, the latest news shows that Zephyr & Boree’s zero-carbon container ship project, which has been in the works for years, is having financing problems, which has forced the company to cancel its shipbuilding contract with HD Hyundai Mipo.
HD Hyundai Mipo has also officially announced that it has canceled its order for five container ships at the request of the shipowner, stating that “the move has not resulted in any loss”.
Notably, Zephyr & Boree said it has not abandoned the project and plans to complete the financing by the end of this year, and a joint project with a South Korean shipbuilder is still in the works.
Zéphyr & Borée is a shipping company specializing in the construction of low-carbon ships and a “pioneer” of modern sail-powered shipping, according to its website. Currently, the International Maritime Organization (IMO) has set a target of reducing CO2 emissions by 50% by 2050. The company aims to contribute to this important change in the shipping industry by designing commercial ships equipped with sails that use alternatives to fossil fuels.