At least one South Korean shipbuilder is getting hit by the cancellation of orders by CMA CGM, and others are fending off cancellations by the troubled French container line, which can’t pay for the orders it placed in more profitable times. In 2006, Hanjin signed a contract with CMA-CGM for four 6,500-TEU containerships at $100 million each. The vessels had been slated for delivery in September 2009. “Hanjin is facing other order cancellations from the French company due to the latter’s unstable positions in terms of cash flow,” a shipbuilding official said. “The French company will delay the delivery of the remaining orders from Hanjin. Situations are not favorable for the Korean shipyard.” CMA CGM, which lost $515 million on $4.8 billion in revenue in the first half of 2009, said it expects to return to profit in 2010.
