News Analysis: Vaunted Zim Integrated Shipping Services (Zim) in 2007 purchased FOUR New Ships for construction by Korean Shipyards. As the World Economic Collapse occurred JUST A FEW MONTHS LATER, it appears Management did Not See the Approaching “Economic Iceberg”. ‘Zim’ posted deposits for the four Vessels of $68+/- Million Dollars with the Ship Yards (Monies the Korean Ship Yards keep now).
The obligation to ‘Zim’ would have been $1.5 +/- Billion dollars if the Ship Keels had been laid (Vessels, Associated Costs, and Interest Charges). Fortunately, for ‘Zim’, postponement of Keel Laying worked to its advantage.
The Ship Yards now charge $100 Million Dollars per Vessel for the $170 Million Dollars they had charged ‘Zim’ in 2007 (the Price Effects of “Supply and Demand” then and now).
“Zim” still has a “Sisyphus” set of Financial Debt Hurdles to overcome.
Over-Confident Ship-Line Owners can learn that “While Money is Important for Success in Shipping; Prescience is Better”.