ZIM Records Strong Third Quarter

by Ship & Bunker News Team
Monday December 3, 2012

For the third quarter of 2012, Israel's ZIM Integrated Shipping Services Ltd (ZIM) says it has recorded its best results since Q3 2010 thanks to a recovery in market conditions, internal efficiency and cost-cutting measures, and a positive seasonal effect.

ZIM said it recorded a net profit to shareholders of $16 million in the period, an $82 million improvement on the loss of $66 million in the quarter last year.

The average freight rate rose some 10 percent to $1,444 per twenty-foot equivalent unit (TEU) from $1,310 per TEU in the period last year, helping the company to a 9 percent increase in quarter-on-quarter revenues to $1.064 billion.

Box volumes for the quarter, traditionally the industry's peak season, dropped 4.5 percent from the same period last year to 617,000 TEU.

Looking ahead, the shipper says despite its positive results for the quarter it believes the industry "is still in a vulnerable condition" not only from supply-demand imbalances from over capacity and the resulting pressure on freight rates, but also from the high volatility of oil prices.

It says the fourth quarter of this year and beyond may be volatile or worse than in the third quarter, and it will continue to discuss a possible split of the company with government officials, warning that a delay in its decision "may complicate the creation of meaningful co-operations and joint-ventures."

Ship & Bunker News Team
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