ZIM reported net loss of 163.5 million USD in 2016

ZIMThe Israeli shipping operator ZIM reported net loss of 163.5 million USD in 2016, compared to net profit of 6.5 million USD an year earlier. However, the company achieved increase in traffic of 5.2% yoy to 2.4 million TEU, but the average freight rate per unit was 19.9% lower to 902 USD per TEU. As a result of a sharp drop in freight rates during the year, the total revenue of the Israeli shipping operator decreased by 15.1% yoy in 2016, to 2.5 billion USD. As a result of increased efficiencies and cost reductions, along with other factors, the unit cost decreased in 2016 by 14% compared to 2015. Starting this spring, ZIM will change its network following the launch of the new alliances in the container sector and the subsequent change in plans, and unlike these alliances, Israeli shipping company is operating alone.

“In spite of the very challenging market conditions in 2016, our results continued to improve, with a net profit in Q4 2016 and an increase in carried TEUs. The results were achieved through a successful efficiency plan and costs reductions implemented at all levels in ZIM”, said the CEO of ZIM, Rafi Danieli. “We operate as an independent, global niche carrier, with emphasis on high level customer service and focus on select markets where ZIM has a competitive advantage”, added he.

The Israeli shipping operator ZIM also reported significant improvement in financial performance in the last quarter of 2016, against the by 3.2% quarter-on-quarter increase of the average freight rate to 915 USD per TEU. As a result, the company had a quarterly profit of 4.6 million USD i n Q4 2016, compared to a net loss of 37.6 million USD during the corresponding period an year ago. The total revenue of ZIM in Q4 2016 grew by 1.5% yoy to 653.5 million USD.

ZIM is the biggest cargo shipping company in Israel, and one of the top-20 global carriers. The company’s headquarters are in Haifa, but it also has a North American headquarters in Norfolk, Virginia. ZIM has capacity for 547,00 TEU, operating about 80 vessels, 13 fully or partly owned.