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Israeli ocean carrier ZIM announced its results for the previous year, following the trend observed across major container lines, according to which the companies’ financial figures in 2023 are significantly lower than in 2022.

In particular, ZIM’s total revenues were US$5.16 billion for the full year of 2023, compared to US$12.56 billion in the previous year, driven primarily by the decrease in freight rates. Notably, the average freight rate per TEU was US$1,203 in 2023, compared to US$3,240 in 2022.

Additionally, the company reported an operating loss of US$2.5 billion in 2023, compared to operating income of US$6.1 billion in 2022. “The decrease was primarily driven by the above-mentioned decrease in revenues and an impairment loss of US$2 billion recorded in the third quarter of 2023,” said ZIM in a statement.

Furthermore, ZIM’s net loss for 2023 was US$2.7 billion, compared to net income of US$4.6 billion for 2022. The company’s adjusted EBITDA also fell from US$7.5 billion to US$1 billion, while ZIM announced an adjusted EBIT loss of US$422 million, compared to an adjusted EBIT of US$6.1 billion in 2022.

Adjusted EBITDA and Adjusted EBIT margins for the full year of 2023 were 20% and -8%, respectively. This compares to 60% and 49% for the full year of 2022, respectively.

In the previous year, the Haifa-based container carrier moved 3.3 million TEUs, maintaining its box volume levels steady.

Eli Glickman, ZIM President & CEO, stated, “We made significant progress advancing our strategic transformation and are pleased to have already started to realize the favorable outcomes we projected. Specifically, we are well on our way to markedly improving our cost structure, enhancing our commercial resilience, and enabling reduced carbon emissions for both ZIM and our customers moving forward.”

He added, “Our fleet renewal programme, which includes 46 newbuild container ships, focuses on shifting ZIM’s reliance on older, less fuel-efficient vessels to a cost and fuel-efficient, more sustainable and largely LNG-powered newbuild fleet, and is progressing as planned following the delivery of 24 new vessels to date. Our cost per TEU is declining and we anticipate additional improvements as our 22 outstanding newbuilds are delivered during the remainder of the year. We continue to review our services to best address customers’ evolving needs and position ZIM to capitalize on attractive growth opportunities.”

Glickman concluded, “During a time when the market remains volatile, our strong cash position will enable us to continue to maintain a long-term view as we focus on generating sustainable value for both customers and shareholders. Looking ahead, we intend to continue to take decisive steps to further benefit from our strategic transformation and expect ZIM to emerge in a stronger position than ever in 2025 and beyond.”

Source: Container News

Israel’s major container carrier ZIM will cancel its Transpacific ZIM eCommerce Xpress (ZEX) service, according to the latest DynaLiners report.

ZEX service launched in July 2020 and was operated by five container vessels with a box capacity of 5,000 TEUs.

The port rotation of ZIM’s service was the following:

Ningbo (China) – Xiamen (China) – Shenzhen (Yantian, China) – Los Angeles (US) – Ningbo

On the other hand, earlier in February, the Israeli container line announced its upgraded ZIM Xpress Baltimore (ZXB) service that links Asia with the United States East Coast.

The ZIM Xpress Baltimore (ZXB) updated weekly rotation will be: Jakarta (Indonesia) – Laem Chabang (Thailand) – Cai Mep (Vietnam) – Haiphong (Vietnam) – Yantian (China) – Kaohsiung (Taiwan) – Panama Canal – Kingston (Jamaica) – Baltimore (US) – Norfolk (US) – New York (US) – Boston (US) – Suez Canal – Jakarta

ZIM is the sole operator of the service, which offers access to most Midwest destinations through Norfolk and Baltimore, while it includes a New York call at Maher terminal and direct coverage from Jakarta and Haiphong.

Hani Kalinski, ZIM executive vice president of the Pacific Business Unit, commented, “The new and upgraded ZXB is another testimony to our agile, customer-centric approach, aimed at providing streamlined premium services to our customers, as well as responding swiftly to changing market needs. The new ZXB offers more coverage, more connections and more opportunities while maintaining our unique dedicated, personal, and exclusive customer experience.”

Source: Container News

The normalisation in container rates has begun, according to ZIM president and CEO, who noted that his company’s third-quarter and nine-month results reflect “outstanding execution and elevated profitability”.

The Israeli container carrier reported US$1.17 billion in net income, US$1.93 billion in adjusted EBITDA and US$1.54 billion in operating income (EBIT) for the third quarter of the year. All these figures are significantly decreased compared with the same period in 2021.

For the period July-September 2022, ZIM’s vessels moved 842,000 TEUs, representing a year-on-year drop of 5%. However, the average freight rate per TEU in the third quarter increased by 4% from 2021 same quarter to US$3,353. As a result, ZIM’s revenues for the third quarter were US$3.23 billion, a year-over-year increase of 3%.

Additionally, for the first nine months of 2022, the Haifa-headquartered ocean carrier has achieved total revenues of US$10.37 billion, EBIT of US$5.5 billion, adjusted EBITDA of US$6.57 billion and net income of US$4.21 billion.

Moreover, ZIM has moved over 2.55 million TEUs from January to September 2022.

“Given our significant cash generation, and consistent with our prioritization of returning capital to shareholders, we have declared this year over US$1.26 billion, or US$10.55 per share, in dividends on account of 2022 results, including a Q3 dividend of approximately US$354 million, or US$2.95 per share,” said Glickman.

ZIM’s boss noted that the company now forecasts 2022 adjusted EBITDA of between US$7.4 billion to US$7.7 billion and adjusted EBIT of between US$6 billion to US$6.3 billion.

Source: Container News

The Israeli shipping company ZIM has announced the opening of a fully-owned agency in New Zealand, replacing the current third-party agent.

The new ZIM New Zealand office will commence operations on 1 November and will be led by David Mitchell, the current country manager, who will join the ZIM team.

ZIM said the purpose of its new agency in New Zealand is to further develop and expand its activities in the region and provide customers with high quality shipping services.

Danny Hoffman, ZIM’s executive vice president in Intra-Asia, commented, “Our strategic goal is to expand and enhance our regional network connecting Asia, Australia and New Zealand, and the new agency is another milestone on our journey.”

Nir Avni, ZIM’s vice president of Medium & Small Countries, said, “We continue to invest significant efforts and resources to strengthen and improve our services in New
Zealand.”

Source: Container News

ZIM Integrated Shipping Services Ltd. (ZIM) and Data Science Group (DSG) have signed a joint venture for the establishment of a Center of Excellence in the field of artificial intelligence (AI) which will update the shipping company’s operations.

Focusing on logistics, operations, finance, and trade, the centre will develop AI and machine learning solutions from the design stage to implementation.

The centre will employ teams from both the Israeli carrier and the DSG, including AI experts and engineers, who will work on the evaluation, validation, and development of the AI projects into ZIM’s operational environment.

According to the announcement, the team will develop advanced models to forecast demand, plan shipping routes, automate logistical processes while analysing the data accumulated from the shipping fleet, which carries 10,000 cargo containers to various seaports, allowing the rapid and efficient development of advanced AI solutions for the carrier.

“ZIM is advancing into the digital age and is leveraging the data it has accumulated over the years to gain new insights that will give it a significant advantage in the world of shipping, which in recent years has become more competitive than ever,” said Executive Vice President and Chief Information Officer of ZIM, Eyal Ben-Amram.

The only way for shipping companies to meet the growing container demand, caused by the Covid-19 crisis, is the use of AI-based forecasting models, according to CEO and co-founder of DSG, Elan Sasson, who pointed out that the container shipping market was already competitive in the past, but now has become even more so, and this trend is expected to continue to strengthen.

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