ZIM Back in the Black
Israeli container line ZIM Integrated Shipping Services Limited reported a total revenues of $834.3 million in Q2 2019, reflecting an increase of 3.9% compared to $803.2 million in Q2 2018.
In Q2 2019, ZIM carried 731 thousand TEUs, the second highest ever carried volume (reflecting a decrease of 5.3% compared to 772 thousand TEUs in Q2 2018, ZIM’s all-times record), said a press note.
The container shipping industry is dynamic and volatile and has been marked in recent years by instability, characterized by volatility in freight rates and bunker prices, as a result of ever-changing market environment and the extensive activity of mergers and acquisitions that also led to reorganization of the global alliances.
The instability and volatility in the market, including significant uncertainties in the global trade, mainly due to USA related trade restrictions, continue to affect the market environment.
During the second half of 2018, freight rates started to recover, with a partial decrease during the first half of 2019, while bunker prices remained highly volatile.
Confronted with this tough business environment, ZIM continued to record improvements and to expand its global network to its customers.
In September 2018, the Company launched its strategic operational cooperation with the “2M” Alliance (Maersk and MSC), in several lines between Asia and the US East-Coast.
During the first quarter of 2019 the cooperation was expanded in two additional trades: Asia - East Mediterranean and Asia - American Pacific Northwest. During the second quarter of 2019, it was agreed between ZIM and the 2M Alliance to further expand the cooperation to the Asia - US Gulf trade.
Theses cooperation agreements enable ZIM to provide its customers with improved product portfolio, larger port coverage and better transit time, while generating cost efficiencies.
Eli Glickman, ZIM President & CEO, said: “ZIM’s results for the first six months of 2019 are encouraging. We can now clearly see the benefits of our long-term strategy, specifically the operational cooperation with the 2M Alliance, recently expanded to a fourth trade. In addition to the positive bottom line delivered this quarter, ZIM recorded a meaningful improvement in all parameters and continue to be a top performer in the shipping industry, in terms of adjusted EBIT margin."
Glickman added: "Our 2023 strategy will double down on our efforts to strengthen our competitive position by growing with our partners, upgrading our customer service, while driving relentless cost management and striving for commercial and business excellence. This is all the more relevant in light of the uncertainties lying ahead for the industry, mainly the USA related trade restrictions and the upcoming implementation of the IMO 2020 regulation.”