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ZIM Cuts Q1 Net Loss

Pic: Zim

Shailaja A. Lakshmi

The Israel-headquartered container carrier Zim Integrated Shipping Services (ZIM) reported a first-quarter net loss of $17.5 million compared with a net loss of $26.1 million in the first quarter of 2018.

The global container shipping company said in a stock exchange annoucement that its first-quarter revenues were $796.2 million, an increase of 6% over the $751.4 million reported for the first quarter of 2018.

In Q1 2019, ZIM carried 668 thousand TEUs (reflecting a decrease of 4.3% compared to Q1 2018), it said.

The container shipping industry is dynamic and volatile and has been marked in recent years by instability, characterized by volatility in freight rates and bunker prices, as a result of ever-changing market environment and the extensive activity of mergers and acquisitions that also led to reorganization of the global alliances, it said.

The instability and volatility in the market, including significant uncertainties in the global trade, continue to affect the market environment.

Since the fourth quarter of 2017 and until the second quarter of 2018, freight rates have decreased while bunker prices, as well as charter rates, increased, negatively affecting the industry as a whole. In the second half of 2018, freight rates started to recover, with a slight decrease during the first quarter of 2019, while bunker prices remained highly volatile.

Eli Glickman, ZIM President & CEO, said: "ZIM continues to pursue its strategic goals, and the Q1 2019 results reflect an improvement, achieved against a backdrop of challenging market conditions. The second phase of our strategic cooperation with the 2M Alliance, in the Asia - East Mediterranean and Asia - American Pacific Northwest trades, began during this quarter."

Eli added: "This cooperation is expected to create additional cost efficiencies, while enabling significantly upgraded service levels to our customers. Our focus and differentiating advantage remains our multi-service approach, combining best-in-market lines, premium and personal customer service and advanced digital solutions."

May 22, 2019

 

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