ZIM records $86 million loss in first quarter

May 21, 2026

ZIM Integrated Shipping Services has reported a net loss of $86 million for the first quarter of 2026, compared with net income of $296 million in the same period last year.

The Israel-based container liner company posted revenues of $1.40 billion for the three months ended 31 March 2026, down 30 per cent year-on-year from $2.01 billion.

ZIM said the decline was mainly due to lower freight rates and reduced carried volume.

The company carried 866,000 TEUs during the quarter, compared with 944,000 TEUs in Q1 2025. Its average freight rate fell 26 per cent to $1,310 per TEU, compared with $1,776 per TEU a year earlier.

ZIM recorded an operating loss of $18 million, compared with an operating income of $464 million in the first quarter of 2025. Adjusted EBITDA stood at $313 million, down 60 per cent year-on-year, while adjusted EBIT was a loss of $5 million.

Eli Glickman, ZIM President and CEO, stated: “Our first quarter results were broadly in line with our expectations, reflecting a softer freight rate environment, coupled with weaker demand.

“Importantly, as the proposed transaction with Hapag-Lloyd moves forward and we continue to navigate the ongoing hostilities affecting Israel and the Middle East, ZIM remains firmly focused on service reliability and disciplined execution.”

READ: ZIM integration may widen MSC connectivity gap

ZIM said its total cash position decreased from $2.80 billion at the end of 2025 to $2.54 billion as of 31 March 2026. Net debt stood at $2.93 billion, compared with $2.92 billion as of 31 December 2025, while the company’s net leverage ratio rose from 1.3x to 1.7x.

The company currently operates 114 containerships with a total capacity of 699,000 TEUs, as well as 13 car carriers. This compares with 126 containerships with a total capacity of 774,000 TEUs and 15 car carriers as of its Q1 2025 earnings release.

The company also confirmed that it will not pay a dividend for the first quarter, in line with its dividend policy and following the reported net loss.

On 16 February 2026, ZIM announced a merger agreement under which Hapag-Lloyd will acquire the company for $35.00 per share in cash.

The transaction was approved by ZIM shareholders on 30 April 2026 and is expected to close in the fourth quarter of 2026, subject to regulatory approvals.