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Economic slowdown hits Zim bottomline

Economic slowdown hits Zim bottomline

Haifa: Israels' Zim Integrated Shipping Services has declared a $29m loss for the first quarter of this year as a result of skyrocketing oil prices and the falling dollar, reports Port2Port. This is the second consecutive quarter that the economic slowdown has hit profits for the container liner.

Despite a higher turnover of $104bn as a result of transporting 614,000teu as compared to the $795m raised from transporting 558,000teu in the previous year, operating costs pulled Zim's bottom line down to a loss of $29m in direct contrast to its $4m profit in the corresponding quarter of 2007.

Zim marketing and sales manager Gilad Evron is reported as having said, "It is difficult to raise prices for customers during an economic slowdown. We're undertaking operational streamlining to adjust to the situation, but there's no doubt that the current market situation does not favor the company." He added that most of the slowdown was felt from the US.  [03/06/08]

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