ZIM Claims Progress in Restructuring, G6 Cooperation

Tuesday December 10, 2013

In the face of continuing losses in Q3, Israel's ZIM Container Shipping Co. (ZIM) reports it is making progress toward restructuring and negotiating with the G6 alliance over expanded cooperation.

ZIM reduced its losses to $44 million in Q3 compared with a loss of $97 million in the previous quarter while its revenues fell to $900 million from $976 million, which it attributed to a drop in freight rates.

"In spite of the improvement, the shipping market conditions are still challenging due a downwards pressure on the freight rates and the continued uncertainty in the global economy," the company said.

"To tackle these challenges ZIM continues to initiate internal efficiency measures.

"At the same time the Company completed intensive negotiation sessions with representatives of all stakeholders this month, and achieved significant progress towards a restructuring that will provide long-term stability."

ZIM announced separately that it is holding discussions with the G6 alliance, which consists of APL, Hyundai Merchant Marine (HMM), Mitsui O.S.K. Lines (MOL), Hapag-Lloyd, Nippon Yusen Kabushiki Kaisha (NYK), and Orient Overseas Container Line (OOCL), over possible cooperation in the Asia-Pacific North West Coast trade.

The two parties already cooperate on the Asia-US East Coast trade.

"Joint ventures are part of ZIM's ongoing strategy," said Rafael Ben-Ari, the company's vice president of shipping.

"We are partners on the PNW with the Grand Alliance since 2009 and discuss to continue moving forward.

"Our aim as always is to improve the services to our customers."

ZIM said in March that it had cancelled newbuilding orders and postponed some payments, helping to improve its financial position after major losses in 2011.