Israel-based liner company Zim Integrated Shipping Services (ZIM) returned to profit in the second quarter of 2019, as revenues continued rising.
Net profit for the period was at USD 5.1 million, compared to a net loss of USD 33.2 million reported in the same quarter a year earlier.
The company’s revenues in the second quarter of 2019 were at USD 834.3 million, reflecting an increase of 3.9% compared to USD 803.2 million reported in the same period a year earlier.
During the three months ended June 30, ZIM carried 731 thousand TEUs, reflecting a decrease of 5.3% compared to 772 thousand TEUs handled in the same quarter of 2018, ZIM’s all-times record.
“The container shipping industry is dynamic and volatile and has been marked in recent years by instability, characterized by volatility in freight rates and bunker prices, as a result of ever-changing market environment and the extensive activity of mergers and acquisitions that also led to reorganization of the global alliances. The instability and volatility in the market, including significant uncertainties in the global trade, mainly due to USA related trade restrictions, continue to affect the market environment,” the company explained.
During the second half of 2018, freight rates started to recover, with a partial decrease during the first half of 2019, while bunker prices remained highly volatile.
“Our 2023 strategy will double down on our efforts to strengthen our competitive position by growing with our partners, upgrading our customer service, while driving relentless cost management and striving for commercial and business excellence,” Eli Glickman, ZIM President & CEO, said.