Wednesday, October 21, 2009

CMA CMG delays ship deliveries

CMA CGM is delaying ship deliveries

From the Journal of Commerce

CMA CGM wants to delay the delivery of 49 ships it has ordered and is scheduled to receive within the next three years, its CEO Rodolphe Saade said Monday.

"Our first objective is to obtain the delay of the delivery of those ships" and an agreement on a payment schedule, Saade said in an interview in Les Echos, according to Agence France Presse.

I don't know why they aren't just trying to cancel them.

After all, there are so many containerships available sitting idle, one would think they should just bite the bullet and cancel the orders.

Of course, the shipyards have not been very easy to deal with, and who knows what it will cost to cancel the orders.

The heavily-indebted French company now owes $5.6 billion. A steering committee including banks and financial institutions is drafting a plan to return the company to profitability next year and secure its long-term future.

The French carrier has 60 large new container ships on order that are scheduled for delivery through 2012. As part of an effort to conserve cash, CMA CGM said it will continue to try to renegotiate and in some cases cancel “certain ship deliveries.”

CMA CGM has a fleet of 91 owned and 272 chartered ships with a combined capacity of more than 1 billion 20-foot equivalent units.

For anyone holding stock in Global Ship Lease, beware.

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