ZIM reports loss of more than 2.2 billion USD in third quarter of 2023
Container shipping line ZIM posted a net loss of $2.27 billion in the third quarter of 2023, while the company posted a net profit of $1.66 billion in the same period last year.
A container ship of ZIM (Photo: YaakovNaumiFlash90)
Similarly, ZIM Shipping Line's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 89% year-on-year to $211 million, with ZIM recording an operating loss (EBIT) of 2 .3 billion USD, while the company had an operating profit of 1.5 billion USD in Q3 2022.
Additionally, ZIM reported third-quarter revenue of $1.28 billion, down 61% year-over-year. Furthermore, the company saw a third-quarter adjusted EBIT loss of $213 million, compared to an adjusted EBIT of $1.5 billion in the third quarter of 2022.
On the other hand, the ocean carrier saw slight growth in container volume, handling 867,000 TEUs in the third quarter of 2023. However, the average freight rate per TEU during this period was $1,139, down from same period last year was 66%.
"We are currently in a transition period, which we expect will extend into 2024, during which we should gradually see the benefits of the decisive actions we have taken to enhance ZIM’s commercial and operational resilience," stated Eli Glickman, ZIM president and CEO.
He went on to add: “We embarked on a fleet renewal program, which included 46 newbuild container ships of which 28 are 'green' LNG vessels, and that along with the redelivery of older, more expensive and less efficient vessels, we expect will improve our cost structure and drive long-term profitable growth. Our cost per TEU is declining and we expect to further reduce our cost base, as our chartered newbuilds, including a total of 28 dual-fuel LNG container ships, are added to our fleet through 2023-2024.”
- Falling container freight rates dragged down CMA CGM's third quarter financial results
- COSCO SHIPPING Ports reports Q3 2023: Revenue growth steady despite falling profits
- Maersk announces reduction of minimum 10,000 jobs
Source: Phaata.com (According to ZIM | ConainerNews)
Phaata.com - Vietnam's First International Logistics Marketplace
► Find Better Freight Rates & Logistics Services!