World News
Zim Posts Further Loss, But Gross Profit Margins Up
Israeli shipper Zim Integrated Shipping Services Ltd. (Zim) has reported a further operating loss of $216.3 million for the third quarter of 2014 (Q3 2014).
The company’s revenue shrank in the latest quarter to $2.6 billion from $2.8 billion in Q3 2013, a 7.1 percent decrease.
Average revenue per twenty-foot equivalent unit (TEU) declined 0.9 percent, or $11, year-on-year to $1,232 per TEU.
However, the company showed improved gross profit margins and posted a gross profit of $101.9 million for Q3 2014 versus a loss of $2.1 million in the corresponding quarter of 2013.
The company is underway with a five year restructuring plan, which according to the company will help it “cope with its challenging financial position.”
The plan has seen a significant restructuring of debts.
The company’s gross profit was reduced to a loss largely as a result of impairments and capital losses suffered as vessels were sold or designated for scrap.
“The U.S. is showing positive growth and China moves towards a more balanced economy, however, the situation is still unstable and factors having a negative effect on the industry still exist,” the company said.
“Excess supply worldwide is expected to continue together with a slowdown in some major economies.”
Earlier this year, Zim said it was reducing costs through a bunker savings plan.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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