World News
ZIM Attributes Improved 2013 Performance to Bunker Cost Control
Despite lower revenues and significant expenses related to its restructuring efforts, Israeli container carrier ZIM Integrated Shipping Services Ltd. (ZIM) reports it reduced its operational loss in 2013 thanks largely to its reduction of bunker costs.
The company said it implemented technological innovations to reduce fuel use and to buy bunkers at optimal prices as part of a comprehensive three-year efficiency program.
ZIM's net loss rose to $530 million in 2013, from $428 million in 2012, but the company said $161 million of the loss was related to "extraordinary expenses," including cancellation of advanced payments for vessels, net capital gains, and other financial adjustments.
The company's volumes rose 5 percent to 2.5 million twenty-foot equivalent units (TEUs) in 2013, but revenues declined 7 percent as freight rates dropped by about 9 percent to $1,227 per container, resulting in a 7 percent drop in revenues to $3.7 billion.
ZIM said it is in "advanced stages of negotiation" with the Israeli government over changes in financial arrangements that would help it cooperate with other carriers and raise capital.
ZIM said in December that it was in discussions with the G6 container shipping alliance over possible expanded cooperation.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 569.50 | 6.50 | 680.00 | 10.50 |
| Rotterdam | 514.00 | 2.50 | 676.00 | 7.50 |
| Houston | 547.50 | 0.00 | 671.50 | 1.50 |
| Fujairah | 561.00 | 0.50 | 751.00 | 1.50 |
| Global 20 Ports Average | 586.00 | 0.00 | 759.00 | 0.00 |
| Global 4 Ports Average | 548.00 | 2.00 | 694.50 | 5.00 |
| Global Average Bunker Price | 633.50 | 1.00 | 798.50 | 0.50 |
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