ZIM revises 2023 projection

ZIM revises 2023 projection

ZIM Integrated Shipping Services Ltd. (ZIM), a worldwide container liner shipping firm, has revised its full-year projection for 2023.

In comparison to its previous forecast of Adjusted EBITDA of $1.8 billion to $2.2 billion and Adjusted EBIT loss of $500 million to $100 million, ZIM now expects to achieve Adjusted EBITDA of $1.2 billion to $1.6 billion and Adjusted EBIT loss of $500 million to $100 million.

ZIM’s revised full-year 2023 projection is principally driven by persistent freight rate deterioration across all of the company’s trades, notably in the Transpacific, which is now projected to extend into the second half of 2023.

Volume growth is also predicted to be lower than anticipated, as demand remains weak.

READ: ZIM profits $4.6 billion for the year

Eli Glickman, ZIM President and CEO, said: “Near-term container shipping market conditions continue to be challenging, with demand expected to remain muted for the remainder of the year.

“While our second quarter results are broadly in-line with our expectations, we no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed.”

Glickman added: “During this downturn, we will continue to actively manage and rationalise our fleet and services, to maximise our cash position, while remaining true to our customer-centric approach, a hallmark of ZIM’s success.

“We expect our strong balance sheet and ample cash to continue serving ZIM well and allow us to maintain a long-term view.

“As we look to the future, we believe that our cost-effective and fuel-efficient newbuild capacity, particularly our newbuild LNG vessels, will markedly improve our cost structure and competitive position, allowing us to deliver sustainable value for both customers and shareholders over the long term.”

ZIM plans to disclose second-quarter 2023 results and host a conference call to discuss quarterly results. The shipping company will also offer a corporate update on 16 August 2023.

In May 2023, ZIM released its financial results for the first quarter of the year, posting revenues of $1.4 billion.

More recently, ZIM announced the development of its partnership with cross-border trade finance platform 40Seas.

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