It's bad enough they continue to buy ships which they then charter to CMA CGM (who is the largest shareholder), but they still plan to buy ships to charter to Zim.
Why would anyone want to do this? Why would Zim want to do this, assuming they are honoring the original contract agreement. There are so many containerships sitting idle they could charter some in at a cheap rate. Furthermore, what does Zim need more ships for? At this time, if you are a container carrier, the more ships you operate, the more money you will lose.
From The Journal of Commerce
Global Ship Lease, a containership charter owner listed on the New York Stock Exchange, posted a net loss of $3.9 million in the third quarter ended Sept. 30, which was more than triple its loss of $1.2 million in the same quarter a year earlier.
The company’s revenue increased by 57 percent to $37.6 million from $23.9 million a year ago, due to the purchase of four additional vessels in December 2008 and one additional vessel in August 2009.
The company said it earned a normalized net profit of $6.2 million in the quarter, excluding an $8.1 million non-cash interest rate derivative mark-to-market charge and $2 million deferred financing costs written off on an accelerated basis. Normalized net earnings are not defined by accounting principles generally accepted in the United States.
And here's the part about the ships...
The company said it was able to borrow sufficient funds under the credit facility to allow the purchase for $82 million in August of the CMA CGM Berlioz, a 2001-built container vessel with 6,627 20-foot equivalent unit capacity chartered to CMA CGM for 12 years.
With that purchase, Global Ship Lease owns 17 container ships that are all on fixed long-term charters with CMA CGM, with an average remaining term of 9.3 years.
The company, which is domiciled in the Marshall Islands, started as a time charter operator in December 2007 when it purchased 10 container vessels from CMA CGM that it leased back to the French liner company.
Global Ship Lease said its has contracts in place to purchase two new 4,250-TEU ships from German interests for approximately $77 million each that are scheduled to be delivered in the fourth quarter of 2010. It said it has agreements to charter out these new ships to Zim Integrated Shipping Services for periods of seven to eight years.