ZIM Integrated Shipping Services (ZIM) saw its earnings before interest and taxes (EBIT) increase by 889% year-on-year (YoY) in 2020 as it surpassed its income record.
In a statement, the Israel-based container shipping line said it capped a “truly momentous time” and underscored the benefits of its differentiated strategy and “protective approach to COVID-19”.
It has become the latest carrier to report positive earnings amid the COVID-19 pandemic, which has seen freight rates increase as demand for containerised goods soars.
Eli Glickman, ZIM President & CEO, stated, “We also ended the year strong, as we achieved EBIT at the high end of our guidance range and continued to achieve industry leading margins.
“We are committed to our goal of consistently performing as one of the top three carriers in terms of EBIT margin.
“We commenced 2021 by becoming the first global container liner to list on the NYSE, highlighting our success creating a leading asset-light shipping liner at the forefront of digitization.
“Following our IPO, we also announced a strategic long-term chartering agreement for ten 15,000 TEU LNG dual-fuel container vessels, positioning ZIM to meet the growing market demand on the Asia – US East Coast trade and advance our leadership in addressing environmental and sustainability issues.”
Glickman continued by describing ZIM as a revitalised company with new strengths and a “promising outlook for operating amid the new realities of shipping”.
The carrier expects to continue its positive trajectory and achieve positive earnings figures in the near future.
Net income for the fourth quarter of 2020 was $366.4 million, compared to $1.2 million for the fourth quarter of 2019.
Total revenues were $1.36 billion for the fourth quarter of 2020, compared to $827.3 million for the fourth quarter of 2019, primarily driven by an increase in revenues from containerized cargo, reflecting increases in both freight rates and carried volume.
ZIM carried 799,000 TEU in the fourth quarter of 2020, compared to 698,000 TEU in the fourth quarter of 2019.