Impairment Losses Drive ZIM into the Red
Israel-based liner company Zim Integrated Shipping Services (ZIM) plunged into red during 2018 due to impairment losses.
The company’s net loss reached USD 119.9 million at the end of the year, including an impairment loss of USD 38 million with respect to vessels classified as held-for-sale, compared to net profit of USD 11.4 million in 2017.
For the fourth quarter of the year, ZIM’s net loss was at USD 46 million due to the impairment loss, compared to net loss of USD 9.7 million recorded in the fourth quarter of 2017.
Total revenues in 2018 were USD 3.24 billion, the highest in the last 4 years, reflecting an increase of 9.1% compared to USD 2,97 billion in 2017. Quarterly revenues were also at a record USD 852.6 million, rising by 12.1% from USD 760.9 million seen in the previous year period.
Yearly and quarterly volumes were at 2,914 thousand TEUs and 714 thousand TEUs, respectively, growing by 10.8% and 4.2% for the periods.
Confronted with tough business environment, ZIM continued to record improvements and to introduce new services to its customers.
“During 2018, we have commenced the first phase of our strategic operational cooperation with the 2M Alliance, recently expanded to two additional trades. The agreement enables ZIM to offer better product and service portfolio to our customers, and cope with the volatile freight rates and fuel prices. We were able to achieve improved cost efficiencies while significantly increasing the transported volumes,” Eli Glickman, ZIM President & CEO, said.