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ZIM slumps sharply into the red in Q2

Photo: ZIM/Chen Galili Eli Glickman - CEO of ZIM
Eli Glickman - CEO of ZIM
ZIM reports a $213 million net loss with the Israeli line hard hit by the downturn in container shipping markets.

While larger lines such as AP Moller Maersk and Hapag-Lloyd have been able to maintain firmly in the black more niche carriers such as ZIM have struggled to remain in positive territory.

NYSE-listed ZIM reported a net loss of $213 million in the second quarter of 2023 compared to $1.34 billion net profit in the same period in 2022. Revenues plunged to $1.31 billion in Q2 2023 a 62% drop on Q2 2022 largely due to a sharp reduction in freight rates. The average rate per teu earned by ZIM in the second quarter of this year was $1,193 down some 67% year-on-year.

ZIM has a larger spot exposure than many carriers with its business split roughly 50 – 50 between spot and contract cargos.

Eli Glickman, ZIM President & CEO commented: “Although our second quarter results reflected continued near-term challenges in the container shipping market, our total cash position of $3.2 billion at quarter’s end remains strong. We believe our ample liquidity and solid balance sheet will enable ZIM to operate from a position of strength and maintain a long-term view even during a prolonged period of market weakness.”

ZIM booked a net loss of $271 million for the first half of 2023 compared to a $3.05 billion net profit a year earlier.

Looking ahead Glickman commented: “Based on a soft peak season and demand that is expected to remain subdued for the remainder of the year, ZIM forecasts full year Adjusted EBITDA of $1.2 billion to $1.6 billion and Adjusted EBIT loss of $500 million to $100 million in 2023.”

ZIM has a significant fleet expansion programme of 38 newbuildings with a capacity 306,184 teu according to analyst Alphaliner. The newbuilds include 28 LNG-powered vessels.