Vol. 114 - No. 102 - May 28, 2010
Zim Reduces Loss, Increases Cargo Volume
Zim Integrated Shipping Services narrowed its first quarter loss to $82 million from $119 million a year ago as increased cargo volumes outweighed lower ocean freight rates.
The Israeli ocean container carrier boosted revenue by 20 percent to $745 million in the three months to the end of March from $622 million in the same period in 2009, parent Israel Corp. reported.
Traffic rose 24 percent to 509,000 20-foot equivalent units from 410,000 TEUs a year ago, but average freight rates per container slipped 12 percent to $1,200 from $1,369.
Zim made a net loss of $332 million in 2009 against a 2008 loss of $432 million but swung to a fourth quarter net profit of $81 million from a $199 million year-earlier loss.
The carrier recently announced it is negotiating the sale of stakes in two foreign companies that could raise between $150 million and $190 million.
Zim came close to collapse in 2009 and was bailed out by Israel Corp., which injected $450 million into the carrier as part of a debt rescheduling agreement with bondholders, creditor banks and shipyards.
Over the past year Zim has climbed from 18th to 15th in the ocean carrier rankings with a fleet of 98 owned and chartered vessels with a combined capacity of 324,582 TEUs, according to Paris-based consultant Alphaliner.