Bunker Prices and Operational Efficiencies Help ZIM to "Sharp Improvement" for 2015 Q1

by Ship & Bunker News Team
Friday May 22, 2015

ZIM Integrated Shipping Ltd (ZIM) Wednesday reported a return to profit in the first quarter of 2015, stating a non-GAAP net profit of $35 million, compared to $53 million loss during the same quarter of 2014.

"We are very pleased with our performance in this quarter and the return to profitability," Rafi Danieli, President and CEO of ZIM, said of the first quarter results.

"The continuing improvement of our business results stems directly from the comprehensive initiatives the company advances, implementation of the business plan which focuses on opening new lines in profitable trade areas and seizing business opportunities, as well as improves operational efficiency, enhancing customer relations and the sharp reduction in fuel prices," Danieli explained.

ZIM says it carried 560,000 TEU of containers in Q1 2015, a 0.5 percent decrease compared with the previous quarter and an 8 percent decrease compared with the same quarter of last year.

It attributed "most of the decrease" to the termination of the service from Asia to Northern Europe and withdrawing from trades which it says "are not part of the company's business focus".

ZIM has also recently announced a new line, called the ZIM Seven Star Express (Z7S), which will connect South China, South East Asia and the Indian sub-continent with the US East Coast via the Suez Canal and back.

"The Z7S, with one of the best transit times between South China, Vietnam, Singapore and Colombo, will be operated exclusively by ZIM, and will deploy 10X5,000/6,500 TEU vessels," Zim said of the new line.

ZIM notes that it is continuing with a steady improvement in the company's operating results, but remains aware of challenges.
 
"We see the continued stagnation of the global economy and the volatile fuel prices, and we are taking steps to face these challenges," Danieli said.

A year ago, the Israeli state was said to have lost control of ZIM as part of a major restructuring.