ZIM Integrated Shipping Services Ltd. (ZIM) has disclosed its combined outcomes for the second quarter and first half of 2023, revealing substantial declines in revenue.
Total revenues were $1.31 billion for the second quarter of 2023, compared to $3.43 billion for the second quarter of 2022.
In the accounted period, ZIM transported 860,000 TEU, compared to 856,000 TEU in the second quarter of 2022. The average freight rate per TEU in the second quarter of 2023 was $1,193, compared to $3,596 in the second quarter of 2022.
During the second quarter of 2023, ZIM witnessed a net loss to $213 million, compared to the second quarter of 2022 net income of $1.33 billion.
The operational loss (EBIT) stood at $168 million, compared to $1.76 billion for the second quarter of 2022, owing mostly to a fall in freight prices.
Adjusted EBITDA was $275 million, compared to $2.1 billion in the same quarter of the previous year or a year-over-year decrease of 87 per cent.
ZIM also reported that adjusted EBIT loss was $147 million in the second quarter of 2023, compared to $1.76 billion in the same quarter of the previous year.
Eli Glickman, ZIM President and CEO, stated: “We continue to take proactive steps to respond to current market realities, with a focus on minimising costs while optimising our commercial strategy.
“We have taken action to rationalise our existing capacity and routinely review our services to adapt our network to customer preferences and identify new commercial opportunities. We also explore opportunities to leverage operational collaborations to improve efficiencies.
“At the same time, as the year progresses, and into 2024, we expect our cost structure to improve in tandem with the delivery of our highly competitive, fuel-efficient, newbuild tonnage, including 28 LNG-powered vessels.”
In July 2023, ZIM revised its full-year projection for 2023.