All articles tagged with #zim
Israeli liner shipping company Zim has experienced a significant financial turnaround, going from massive losses to becoming a money-making machine in just two months, thanks to attacks by Houthi rebels on vessels in the Red Sea. The NYSE-listed carrier, led by chief executive Eli Glickman, has been upgraded as its financial fortunes have been reversed, marking a remarkable transformation for the company.
Shares of Israeli shipping company Zim dropped over 17% after reports of their Chinese partner COSCO withdrawing from Israel, but the market is also unsettled by rumors of a containership line allegedly bribing Houthi officials to avoid targeting their vessels in the Red Sea. The alleged deal involves ensuring safe passage for certain carriers in exchange for avoiding Israeli goods and ports, but two major carriers have denied participating in any bribes. The US military and Federal Maritime Commission are being consulted for further insights, and US Central Command has referred inquiries to the ship owners.
ZIM Integrated Shipping Services reported a net loss of $2.27 billion for the third quarter of 2023, compared to a net income of $1.17 billion in the same period last year. The loss was primarily driven by a non-cash impairment loss of $2.06 billion. Revenues for the quarter decreased by 61% year-over-year to $1.27 billion. ZIM revised its full-year guidance, expecting adjusted EBITDA of $900-$1,100 million and an adjusted EBIT loss of $600-$400 million for 2023. The company cited weak demand and deteriorating freight rates as the reasons for the revision. ZIM is implementing cost control measures and a fleet renewal program to improve its cost structure and drive long-term growth.