31.1 Commitments on vessels and containers
Vessels and containers operated under time charters which qualify as operating leases
As at December 31, 2013 the Company operates 347 vessels under time charters (330 as at December 31, 2012).
The due dates of leases payable for 375 vessels delivered or to be delivered under time charters at the balance sheet date can be analysed as follows:
Total Less 1 year 1 to 5 years 6 to 10 years Over 10 years Vessels under time charts payments as of December 31,
2013 - not discounted 6,444,682 771,072 3,224,192 1,845,823 603,596
Vessels under time charts payments as of December 31,
2013 - discounted 4,026,661 704,819 2,272,885 858,919 190,038
Vessels under time charts payments as of December 31,
2012 - not discounted 5,091,684 670,636 2,628,021 1,524,431 268,596
Vessels under time charts payments as of December 31,
2012 - discounted 3,288,198 613,012 1,875,715 714,110 85,360
The amounts payable to ship-owners presented above only correspond to the equivalent bareboat charter payable and do not include running costs. The Company generally charters vessels under time charts which are composed of a bareboat and a running cost component. Running costs which typically include crew and technical maintenance approximate 21% of the total charter commitments as they relate to large vessels with relatively low running costs compared to the capital cost. Running costs currently account for approximately 52% of the Group's chartering expenses as the fleet under charter is composed of different sizes of vessels.
As at December 31, 2013, the Company is committed to pay time charters in relation to 28 vessels not yet delivered. Such commitments are included in the table above and amount to USD 3,019 million on an undiscounted basis and USD 1,579 million on a discounted basis. The delivery of these vessels is scheduled to take place from 2014 to 2016. On January 2, 2014, the Company entered into a 12 year operating lease agreement for three 9,400 TEU container vessels to be delivered in 2016 (see Note 34), which are not included in the table above.
The table above also includes commitments to Global Ship Lease Inc., a related party, for an undiscounted amount of USD 652 million as at December 31, 2013 (USD 749 million as at December 31, 2012).
In certain cases, the Group may benefit from non-bargain purchase options to acquire the vessel at the end of the lease term.
The due dates of the container operating leases held at the balance sheet date can be analyzed as follows:
Total Less 1 year 1 to 5 years 6 to 10 years Over 10 years Containers under time charts payments as of December 31,
2013 1,961,009 457,478 1,286,929 213,313 3,289
Containers under time charts payments as of December 31,
2012 1,773,019 411,931 1,099,560 254,738 6,790
This table includes commitments to Investment and Financing Corp. Ltd., a related party, amounting to USD 134,644 thousand as at December 31, 2013 (USD 161,240 thousand as at December 31, 2012).
The total amount of operating lease payments related to vessels and containers was USD 2,047 million in 2013 (USD 1,994 million in 2012).
Commitments related to ordered vessels During the year 2013, the Company:
Took delivery of two vessels;
Reached an amicable agreement with a shipyard regarding an order of three vessels which had been under negotiation. Under the terms of this agreement, the contracts for these three CONRO vessels have been cancelled and have been replaced by new contracts for three 2,100 TEU container carriers. The construction cost of these new container carries will amount to USD 102,000 thousand.
The Company has agreed that out of the USD 108,350 thousand that it had already paid under the previous contracts, the shipyard will retain USD 42,350 thousand as compensation for losses and damages incurred. The remaining amount of USD 66,000 thousand will be used as delivery instalments on the new contracts. The Company will still have to finance USD 36,000 thousand for these contracts;
Ordered three vessels following the settlement of a litigation (see Note 30 and below); and
Has received from a shipyard the confirmation of cancellation for 8 vessels related to orders under discussion as at December 31, 2012. The related prepayments are fully impaired as at December 31, 2013 (same as at December 31, 2012) (see note 20) which management considers appropriate.
As at December 31, 2013, the total orderbook amounts to USD 545,619 thousand corresponding to three 17,700 TEU container vessels and three 2,100 TEU container carriers to be delivered in 2015. Financing has been obtained for an amount of USD 310,000 thousand for the 17,700 TEU vessels. Regarding the financing of the three 2,100 TEU container carriers, USD 66,000 will be re-allocated from installments already paid by the Company for orders that were subsequently cancelled, as disclosed above. During the year ended December 31, 2013, the Company paid to shipyards USD 50,550 thousand through this financing and USD 56,362 thousand with cash available.
The contractual commitments related to the construction of these vessels can be analyzed as follows (in USD
* of which payable in:
2013 - 293,820
2014 100,724
-2015 337,983
-Total 438,707 293,820
- Remaining commitments, net of prepayments Confirmed orderbook
Orders under discussion with shipyards - Remaining commitments, net of prepayments
- Commited financings
The refund guarantees granted by the banks to the Company on behalf of the shipyards until the delivery is complete amount to USD 179,100 thousand as at December 31, 2013 (USD 171 million as at December 31, 2012). These guarantees relate to the construction of 6 vessels in 2013 (2 vessels in 2012).
In order to secure the financing of its orderbook, the Company partially transferred these guarantees to the benefit of its own banks for an amount of USD 108 million.
31.2 Commitments relating to concession fees
The Company carries out certain stevedoring activities under long-term concession arrangements with governmental bodies. Future minimum discounted payments under these arrangements amount to USD 24,245 thousand as at December 31, 2013 (USD 208,726 thousand as at December 31, 2012). The reduced commitment can be explained by the fact that Terminal Link is no longer consolidated by the Company.
31.3 Other Financial Commitments
Other financial commitments primarily relate to the following:
Financial Commitments given
Guarantees on terminal financing 143,645 126,404
Customs guarantees 11,852 13,895
Other charter hire commitments 0 22,102
Port authorities and administration 4,147 5,008
Office rented guarantees 27,810 5,156
Others garantees granted for non-current assets 101,626 19,635
Mortgage on share of associates 1,942 57,200
Pledge 458,488 568,125
Other 440,388 300,667
As at December 31, 2013, the Company transferred USD 942,594 thousand of trade receivables as collateral under a securitization program (USD 658,684 thousand as at December 31, 2012).
The Company has also granted certain put options to owners of non-controlling interests. These put options are not disclosed for confidentiality reasons and are assessed as being immaterial at Group level.
Financial Commitments received
As at December 31, 2013
As at December 31, 2012 Guarantees received from independent shipping agents 6,705 1,787
Guarantees received from customers 8,250 7,686
Other financial commitments received 96,233 109,143