South Korean shipbuilder HD Hyundai Mipo Dockyard (HMD) has confirmed the cancellation of a major construction contract with French shipping start-up Zephyr & Boree.

The contract, signed in May 2023, involved the construction of five innovative container vessels, each with a capacity of approximately 1,300 TEUs. These vessels were designed to run on methanol-fuelled engines and incorporate sails, reflecting Zephyr & Boree’s commitment to sustainable shipping. The contract was valued at around $311 million.

Originally, the vessels were scheduled for delivery between late 2025 and mid-2026 and were intended for long-term charters with several French cargo companies. However, financing difficulties led Zephyr & Boree to request the contract’s cancellation. HMD agreed to cancel the order, stating that it expects no financial losses from the termination.