ZIM on Track for Double-Digit Volume Growth

ZIM Integrated Shipping Services has announced a net income for the second quarter of 2024 of $373 million (compared to a net loss of $213 million in the second quarter of 2023).

The company’s adjusted EBITDA for the second quarter was $766 million, a year-over-year increase of 179%. Total revenue for the second quarter was $1,933 million, a year-over-year increase of 48%.

Carried volume in the second quarter was 952,000 TEUs, a year-over-year increase of 11%, and its average freight rate per TEU in the second quarter was $1,674, a year-over-year increase of 40%.

Eli Glickman, ZIM President & CEO, stated, “During the quarter, we benefitted from ZIM’s strategic decision to increase the company’s spot market exposure in the Transpacific trade. This has enabled us to capture significant upside in a rate environment that has been elevated for longer than anticipated.

“We expect our results in the second half of 2024 to be better than in the first half of the year, driven by continued supply pressure from the Red Sea crisis, combined with current favorable demand trends. As a result, we have significantly increased our full year 2024 guidance and today forecast full year Adjusted EBITDA between $2.6 billion and $3.0 billion and Adjusted EBIT between $1.45 billion and $1.85 billion.”

Glickman said that while market fundamentals still signal supply growth significantly outpacing demand, he is confident that the business is resilient with a transformed fleet. “By year's end, our ongoing newbuild program will be complete, as we receive delivery of the remaining eight out of 46 modern, fuel-efficient containerships that we secured, including 28 LNG-powered vessels. We are on track to achieve our double-digit volume growth target in 2024 and well positioned to drive profitable growth ahead.”