During 2016-2017, the container shipping industry went through a structural change as a result of the extensive activity of mergers and acquisitions that also led to reorganization of the global alliances. Since Q3 2016 we have been witnessing a positive trend in the industry with improved freight rates. However, the overcapacity still exists in the market and market conditions, on the whole, remained volatile, as freight rates partially decreased towards the end of 2017.
In the face of the dynamic and challenging business environment, ZIM continues to outperform the industry and achieve improved results. The 2017 results reflect the constant improvement in the company’s performance, as a result of the comprehensive transformation the company has implemented in recent periods.
Financial and Operating Highlights for the Year Ended December 31, 2017:
-) ZIM carried 2.63 million TEUs, compared to 2.43 million TEUs in the comparable period of 2016, an 8 per cent increase
-) The average freight rate per TEU was USD 995, compared to USD 902 in the comparable period of 2016, a 10 per cent increase
-) Total revenues were USD 2,978 million, compared to USD 2,539 million in the comparable period of 2016, a 17% increase
-) EBITDA was USD 246 million, compared to negative USD 50 million in the comparable period of 2016
-) EBIT was USD 135 million, compared to negative USD 52 million in the comparable period of 2016
-) Adjusted net profit was USD 50 million, compared to adjusted net loss of USD 150 million in the comparable period of 2016
-) Net Profit was USD 11 million, compared to net loss of USD 163 million in the comparable period of 2016
Eli Glickman, ZIM’s President & CEO, says: “I’m proud to say that ZIM’s financial results position us at the very top of the shipping industry. Our well efficient network has proved reliable and able to provide excellent service levels to our customers. We lead the introduction of innovative digital solutions that will enable us to cater for changing market needs swiftly and efficiently. ZIM continues with its relentless efforts to improve customer service and to cost reductions, in order to achieve profitability. At the same time, the long-term overcapacity in the market and rising bunker rates continue to burden the industry as a whole.”
ZIM Integrated Shipping Services Ltd is one of the leading carriers in the global container shipping industry. ZIM operates a modern fleet and a network of shipping lines offering cargo transportation services on all major global trade routes, supported by the company’s local offices and representatives around the world.