ISRAELI flag carrier Zim posted a 2016 annual net loss of US$163.5 million compared to a net profit of $6.5 million in 2015 while revenue was down 15 per cent to $2.54 billion in 2016.
But Zim posted a net profit of $4.6 million for the fourth quarter of 2016, compared to a net loss of $28 million for the fourth quarter of 2015.
"In spite of the very challenging market conditions in 2016, our results continued to improve," said Zim president and CEO Rafi Danieli.
Container volumes increased 3.9 per cent year on year in the fourth quarter to 613,000 TEU, and 5.2 per cent for the full year to 2.4 million TEU.
The company said freight rates were stronger in the fourth quarter, averaging $915 per TEU, up 3.2 per cent from the third quarter of 2016.
But for the full year, the average freight rate stood at $902 per TEU, nearly 20 per cent lower than in 2015.
Said Mr Danieli: "We continue to improve Zim's network and to react rapidly to changing market conditions. Starting in April, in response to the changes in the alliances' set-up, Zim will introduce an upgraded, efficient new network, with new services in the Asia-America, Asia-Med and Med-America trades."
A statement accompanying the results said world container shipping continued to be volatile marked by years of instability from a prolonged economic crisis, a deteriorating market, characterised by slow growth and worsening overcapacity, combined with uncertainty from realigning global alliances and mergers.
"This situation combined with carriers' ambitions to increase and protect their market share led freight rates to fall sharply in most of the trades, mainly since the second half of 2015," said the statement.
Source: SchednetPrevious Next
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