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Restructuring brings black Q2 for ZIM

Restructuring brings black Q2 for ZIM
ZIM has reported a $12m profit for the second quarter, compared to a $67m loss in the same period last year, before it had completed its restructuring.

Total volumes fell 6% to 577,000 teu in the quarter, mostly due to the company withdrawing certain of its routes as part of its restructure and refocus. A decrease in demand was also seen on the Asia-Med trade route.

The drop in volumes combined with a 5% drop in average freight rate to $1,150 per teu conspired to bring revenue down to $763m from $875m in the same period last year.

Operationally the main development in the quarter was the implementation of ZIM's strategy of developing Asia-US routes with the opening of the ZIM Seven Star Express (Z7S). The loop will connects China, South East Asia and the Indian subcontinent via Suez, and is served on a weekly basis by ten 5,000 - 6,5000 teu vessels.