ZIM Q3 results: a test of resilience
ZIM Integrated Shipping Services reported a significant net loss of USD 2.27 billion for Q3/2023, primarily due to a non-cash impairment loss of approximately USD 2.1 billion. This loss is a stark contrast to the net income of USD 1.166 billion in Q3/2022.
The company's revenues saw a 61% year-over-year decrease, standing at USD 1.273 billion. Adjusted ebitda plummeted by 89% to USD 211 million, and the company faced an operating loss (ebit) of USD 2.276 billion, compared to an operating income of USD 1.544 billion in the same quarter of the previous year.
Despite a slight increase in carried volume, the average freight rate per teu dropped by 66%. ZIM's president & CEO, Eli Glickman, attributed the poor results to weak demand and deteriorating freight rates, and he outlined measures taken to enhance the company's commercial and operational resilience, including a fleet renewal programme and collaborations aimed at improving operational efficiencies. (pb)