ZIM: Higher Revenues, But a Loss in 2018
The biggest cargo shipping company in Israel, Zim Integrated Shipping Services Ltd (ZIM) reported a revenue of nearly $3.25 billion in 2018, the highest in the last 4 years, reflecting an increase of 9.1% compared to $2.98 billion in 2017.
However, the global container liner had a net loss in 2018 of $119.9 million, including an impairment loss of $38.0 million with respect to vessels classified as held for sale, compared to net profit of $11.4 million in 2017.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $145.3 million in 2018, compared to $270.1 million in 2017.
The container shipping industry is dynamic and volatile and has been marked in recent years by instability, as a result of continued deterioration of market environment, it pointed out in a press release.
Furthermore, the shipping liner industry went through major developments and structural changes which include reshaping of the alliances and M&A activities that took place over recent years. The instability and volatility in the market, including significant uncertainties in the global trade, continue to affect the market environment.
Eli Glickman, ZIM President & CEO, said: “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. At the same time, we continue to put our customer service at the center, introducing new services and investing in innovative digital solutions," Eli added.
ZIM carried 2,914,000 TEUs of containerized cargo last year, 10.8 percent more than in 2017 and an all-time record.