Israeli shipping company ZIM posted a sharp improvement in its business results for the first quarter of 2015 recording a non-GAAP net profit of USD 35 million, compared to a USD 4 million loss in the last quarter and a USD 53 million loss in the parallel quarter in 2014.
The operating cash flow in Q1 2015 amounted to USD 54 million compared to a USD 23 million in the parallel quarter of last year, ZIM said.
“The continuing improvement of our business results stems directly from the comprehensive initiatives the company advances, implementation of the business plan which focuses on opening new lines in profitable trade areas and seizing business opportunities, as well as improves operational efficiency, enhancing customer relations and the sharp reduction in fuel prices. At the same time we see the continued stagnation of the global economy and the volatile fuel prices, and we are taking steps to face these challenges,” said ZIM President and CEO Rafi Danieli.
ZIM introduced additional sailings from Asia to US East Coast and announced the inauguration of a new line, the ZIM Seven Star Express (Z7S), connecting South China, South East Asia and the Indian sub-continent with the US East Coast via the Suez Canal and back.
The Z7S, with one of the best transit times between South China, Vietnam, Singapore and Colombo, will be operated exclusively by ZIM, and will deploy 10X5,000/6,500 TEU vessels, the company said.
The company carried 560,000 TEU containers in Q1 2015, reflecting a 0.5% decrease compared with the previous quarter and 8% decrease compared with the same quarter in 2014.
ZIM said that most of the decrease was a result of terminating the service from Asia to Northern Europe and withdrawing from trades which are not part of the company’s business focus.
As a result of the reduced volume of containers carried, the total revenues in Q1 2015 were USD 792 million, compared to USD 813 million in the previous quarter and USD 867 million in the same quarter of last year. The average freight rate per TEU amounted to USD 1,251, no change from the previous quarter and an increase of 3% compared to the same quarter of last year.