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Zim in the red for US$33m in Q2 despite more sales

ISRAELI flag carrier Zim posted a net loss of US$33.2 million in the second quarter of the year compared to a net profit of $2.3 million in the same period in 2017 despite the strong increase in cargo carried, which was not enough to offset lower freight rates and higher fuel and charter costs.

Total revenues in the second quarter were $803.2 million, 7.7 per cent more than in the $745.7 million Zim reported in the second quarter of 2017.

The boost in revenue was due to the 17.1 per cent increase in containers carried - 772,000 TEU in the second quarter of 2018 compared to 659,000 TEU in the second quarter of 2017. Average freight rate per TEU fell to $907 per TEU in the second quarter of 2018, a 9.9 per cent drop from $1,007 in the second quarter of 2017, American Shipper reported.

The president and chief executive officer of Zim, Eli Glickman, said the second quarter of 2018 "was characterised by the continued rise in fuel prices and chartering rates, as well as low freight rates, all with a negative impact on the results of carriers, including Zim."

In July, Zim announced a long-term strategic cooperation with Maersk and MSC on five services between Asia and the US East Coast. The carrier said the agreement "is expected to bring considerable efficiencies and savings, along with a far improved service portfolio, supporting Zim's strategy going forward."

Source: Schendet

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