ZIM raises full-year guidance

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Israeli container shipping company ZIM rebounds from last year’s Q1 loss amid improved freight rates.

Israeli container shipping company ZIM has reported a major rebound in the first quarter of 2024 with a net profit of US$92 million, against a net loss of US$58 million in the first quarter of 2023.

The company’s revenues reached US$1.56 billion, marking a 14% year-on-year increase. Carried volume rose to 846 thousand TEU, a 10% rise when compared to the same period last year. Furthermore, the average freight rate per TEU reached US$1,452, reflecting a 4% year-on-year growth.

ZIM revealed that its Q1 2024 operating income (EBIT) was US$167 million, compared to an operating loss of US$14 million in Q1 2023.

The results were assigned to a ‘significant improvement’ in global freight rates and restructuring of the company’s fleet and cost structure.

“Given the recent improved freight rate environment currently impacting more trades, we have increased our full year 2024 guidance and today forecast full-year Adjusted EBITDA between US$1.15 billion and US$1.55 billion and Adjusted EBIT between zero and US$400 million,” Eli Glickman, ZIM President & CEO, said.

“Looking ahead, we now expect freight rates to remain stronger for longer than initially anticipated due to a combination of continued pressure on supply and availability of equipment and a recent uptick in demand. While the rate environment during the latter part of 2024 remains unknown, we are confident in ZIM’s strategic positioning as an agile container shipping player with a competitive cost- and fuel-efficient, modern fleet.”

By the end of the year, ZIM expects to take delivery of the final 16 out of its 46 newbuild containerships, which include 28 LNG-powered vessels.

“With a fleet optimally suited to the trades in which we operate, together with declining unit costs, we are well positioned to achieve our volume growth targets and deliver on our commitment to profitability over the long term,” Glickman added.

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