CMA CGM, ZIM GO BACK TO SHIPBUILDING MARKET

CMA CGM, ZIM GO BACK TO SHIPBUILDING MARKET

   CMA CGM and Zim Israel Navigation Co. have separately ordered a total of 12 large containerships.

   The vessel orders are the latest sign that major containership operators are going back to the shipbuilding market, after a pause of about a year linked to the onset of overcapacity.

   Marseilles-based CMA CGM said that it ordered eight ships of 5,770-TEU capacity from the Samsung shipyard. The 26-knot vessels are due to be delivered from April 2004 through December 2004.

   They will be operated within the carrier’s NCX service between North Europe and Asia.

   Zim has ordered another four 5,000-TEU vessels, similar to the six ships ordered from the Hyundai shipyard last year. The four new ships will be delivered during 2004.

   Of the four newly ordered ships, one will be owned by Zim, two by Offer Brothers, the main shareholder of Zim, and one by the Greek non-operating owner Costamare Shipping. All four ships will be operated by Zim.

   Zim said that its order is part of a $200-million second phase of construction of new ships. The last ship of the initial six-ship order will be delivered to Zim in October.

   The Panamax containerships in the latest order will have a speed of 24 knots. They will replace smaller 21-knots ships deployed today in Zim’s main east/west service, the Zim Container Service.

   Yang Ming Marine, of Taiwan, and Danaos Shipping Co., Ltd., of Greece, have also recently returned to the shipbuilding market.

   Asked whether the vessel orders would contribute to overcapacity, Zim spokesman Dan Nadler replied: “By 2004, we hope that the trade will have grown.” After taking delivery of the new ships, Zim will off-charter certain vessels, he added.