Israel-based carrier ZIM has reported an all-time record of containers carried in its financial results, with 2.6 million TEUs, achieving an increase of 8% compared to 2016.
Its quantities increased by 12% to 685,000 TEU in Q4 2017, compared to 613,000 TEU in the same period of 2016.
The thirteenth largest container shipping company by vessel capacity stated that 2016 to 2017 produced a “positive trend in the industry with improved freight rates”, which supported the industry’s structural changes as mergers and acquisitions led to the reorganization of global alliances.
However, ZIM warned that an existing overcapacity meant the market was still “volatile”, with freight rates partially decreasing towards the end of 2017.
In its financial statement, ZIM said that in the face of a “dynamic and challenging business environment”, it was continuing to “outperform the industry”.
ZIM's results (pictured below) reported an adjusted EBITDA of $53 million in Q4 2017 compared to $44 million in Q4 2016, with an adjusted EBITDA margin of 7%.
Matthew Gore, Partner, HFW has documented the lows (and carrier losses) of 2016 in a Port Technology technical paper
Eli Glickman, ZIM’s President & CEO, said: “I’m proud to say that ZIM’s financial results position us at the very top of the shipping industry.
“ZIM is undergoing a profound process of change and improvement in all aspects of its activity, as is evident from its 2017 results.
“Our well efficient network of shipping lines has proved reliable and able to provide excellent service levels to our customers.
“We lead the introduction of innovative digital solutions that will enable us to cater for changing market needs swiftly and efficiently.
“ZIM continues with its relentless efforts to improve customer service and to cost reductions, in order to achieve profitability.
“At the same time, the long-term overcapacity in the market and rising bunker rates continue to burden the industry as a whole.”