ZIM reports higher revenues but a loss in 2018

The shipping line carried a record number of containers and has entered into a cooperation agreement with Maersk and MSC on several trades it says will reduce costs.

   ZIM reports it had a net loss in 2018 of $119.9 million, including an impairment loss of $38.0 million with respect to vessels classified as held for sale, compared to net profit of $11.4 million in 2017.
   Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $145.3 million in 2018, compared to $270.1 million in 2017.
   Revenue, however, was up 9.1 percent to nearly $3.25 billion in 2018 compared to $2.98 billion in 2017. That’s the highest in four years for the carrier. 
   ZIM carried 2,914,000 TEUs of containerized cargo last year, 10.8 percent more than in 2017 and an all-time record.
   “During 2018, we have commenced the first phase of our strategic operational cooperation with the 2M Alliance, recently expanded to two additional trades,” said Eli Glickman, the president and chief executive officer of ZIM. 
   Beginning in September, ZIM joined the 2M alliance of Maersk and Mediterranean Shipping Company in operating several strings of vessels between Asia and the U.S. East Coast. In January, ZIM and the 2M announced a second cooperation agreement in two additional trades between Asia and the East Mediterranean as well as between Asia and the Pacific Northwest in North America.
    Glickman said the cooperation with 2M “enables ZIM to offer a better product and service portfolio to our customers and cope with the volatile freight rates and fuel prices. We were able to achieve improved cost efficiencies while significantly increasing the transported volumes. At the same time, we continue to put our customer service at the center, introducing new services and investing in innovative digital solutions.”