ZIM Cuts Net Loss in Tough Business Environment
Israeli shipping company ZIM managed to shrink its net loss in the first quarter of the year.
According to the company’s financial report, net loss was USD 24.3 million for the period ended March 31, 2019, compared to a net loss of USD 34.1 million in the first quarter of 2018.
Revenues reached USD 796.2 million in the first quarter of 2019, reflecting an increase of 6% compared to USD 751.4 million reported in the same period a year earlier. Volumes were also up by 4.3% at 668 thousand TEUs in the period.
“ZIM continues to pursue its strategic goals, and the Q1 2019 results reflect an improvement, achieved against a backdrop of challenging market conditions,” Eli Glickman, ZIM President & CEO, said.
Since the fourth quarter of 2017 and until the second quarter of 2018, freight rates have decreased while bunker prices, as well as charter rates, increased, negatively affecting the industry as a whole.
In the second half of 2018, freight rates started to recover, with a slight decrease during the first quarter of 2019, while bunker prices remained highly volatile.
Confronted with tough business environment, ZIM continued to record improvements and to introduce new services to its customers.
In September 2018, the company launched its strategic operational cooperation with the 2M Alliance in several lines between Asia and the US East-Coast. During the first quarter of 2019 such cooperation was further extended also in two additional trades: Asia – East Mediterranean and Asia – American Pacific Northwest.
“This cooperation is expected to create additional cost efficiencies, while enabling significantly upgraded service levels to our customers,” Glickman added.