Growth in carried volumes and freight rates has led to a turnaround in profitability for Israeli container shipping company ZIM, which reported a net income of US$373 million for Q2 2024, a significant recovery from the net loss of US$213 million in Q2 2023.

Total revenues for Q2 2024 reached US$1.93 billion, compared to US$1.31 billion a year earlier. ZIM carried 952,000 TEU in Q2 2024, up from 860,000 TEU in Q2 2023. The average freight rate per TEU also rose, reaching US$1,674 compared to US$1,193 in the previous year’s quarter.

Adjusted EBITDA for Q2 2024 jumped to US$766 million, a major increase from US$275 million in Q2 2023. Adjusted EBIT also improved, standing at US$488 million, compared to an Adjusted EBIT loss of US$147 million in Q2 2023.

For the first half of 2024, ZIM’s total revenues reached US$3.49 billion, up from US$2.68 billion in the first half of 2023. The company carried 1,799,000 TEU in this period, up from 1,629,000 TEU in the first half of 2023. The average freight rate per TEU for H1 2024 was $1,569, compared to $1,286 in H1 2023.

EBIT for the first half of 2024 was US$635 million, a significant improvement from the operating loss of US$182 million reported in the first half of 2023. Net income for the first half of 2024 was US$465 million, compared to a net loss of US$271 million in the same period last year.

• Adjusted EBITDA for H1 2024 increased to US$1.19 billion, up from US$648 million in H1 2023.
• Adjusted EBIT for H1 2024 reached US$655 million( loss of US$160 million in H1 2023).

In light of its strong performance, ZIM has raised its full-year 2024 guidance, now expecting to generate Adjusted EBITDA between US$2.6 billion and US$3.0 billion (previous estimate US$1.15-1.55 billion), and Adjusted EBIT between US$1.45-$1.85 billion (zero and US$400 million).

ZIM President and CEO Eli Glickman attributed the quarterly business performance to the company’s decision to increase its exposure to the spot market in the Transpacific trade, allowing ZIM to capitalise on elevated freight rates.

“This has enabled us to capture significant upside in a rate environment that has been elevated for longer than anticipated. We expect our results in the second half of 2024 to be better than in the first half of the year, driven by continued supply pressure from the Red Sea crisis, combined with current favourable demand trends,” he added.

“While market fundamentals still signal supply growth significantly outpacing demand, we are confident that we have built a resilient business with a transformed fleet. By year’s end, our ongoing newbuild program will be complete, as we receive delivery of the remaining eight out of 46 modern, fuel-efficient containerships that we secured, including 28 LNG-powered vessels. We are on track to achieve our double-digit volume growth target in 2024 and well positioned to drive profitable growth ahead.”

Growth in carried volumes and freight rates has led to a turnaround in profitability for Israeli container shipping company ZIM, which reported a net income of US$373 million for Q2 2024, a significant recovery from the net loss of US$213 million in Q2 2023.

Total revenues for Q2 2024 reached US$1.93 billion, compared to US$1.31 billion a year earlier. ZIM carried 952,000 TEU in Q2 2024, up from 860,000 TEU in Q2 2023. The average freight rate per TEU also rose, reaching US$1,674 compared to US$1,193 in the previous year’s quarter.

Adjusted EBITDA for Q2 2024 jumped to US$766 million, a major increase from US$275 million in Q2 2023. Adjusted EBIT also improved, standing at US$488 million, compared to an Adjusted EBIT loss of US$147 million in Q2 2023.

For the first half of 2024, ZIM’s total revenues reached US$3.49 billion, up from US$2.68 billion in the first half of 2023. The company carried 1,799,000 TEU in this period, up from 1,629,000 TEU in the first half of 2023. The average freight rate per TEU for H1 2024 was $1,569, compared to $1,286 in H1 2023.

EBIT for the first half of 2024 was US$635 million, a significant improvement from the operating loss of US$182 million reported in the first half of 2023. Net income for the first half of 2024 was US$465 million, compared to a net loss of US$271 million in the same period last year.

• Adjusted EBITDA for H1 2024 increased to US$1.19 billion, up from US$648 million in H1 2023.
• Adjusted EBIT for H1 2024 reached US$655 million( loss of US$160 million in H1 2023).

In light of its strong performance, ZIM has raised its full-year 2024 guidance, now expecting to generate Adjusted EBITDA between US$2.6 billion and US$3.0 billion (previous estimate US$1.15-1.55 billion), and Adjusted EBIT between US$1.45-$1.85 billion (zero and US$400 million).

ZIM President and CEO Eli Glickman attributed the quarterly business performance to the company’s decision to increase its exposure to the spot market in the Transpacific trade, allowing ZIM to capitalise on elevated freight rates.

“This has enabled us to capture significant upside in a rate environment that has been elevated for longer than anticipated. We expect our results in the second half of 2024 to be better than in the first half of the year, driven by continued supply pressure from the Red Sea crisis, combined with current favourable demand trends,” he added.

“While market fundamentals still signal supply growth significantly outpacing demand, we are confident that we have built a resilient business with a transformed fleet. By year’s end, our ongoing newbuild program will be complete, as we receive delivery of the remaining eight out of 46 modern, fuel-efficient containerships that we secured, including 28 LNG-powered vessels. We are on track to achieve our double-digit volume growth target in 2024 and well positioned to drive profitable growth ahead.”