Zim Integrated Shipping Services

Is Wall Street warming back up to containership line Zim?

For nearly two years, capital markets have punished Zim, the Israeli containership line whose fleet is the 10th-largest on the ocean. Zim’s model, which involves operating a subscale, highly chartered fleet of smaller vessels almost wholly exposed to the spot market, took a beating when collapsing spot rates collided with its high COVID-era lease expenses. The stock peaked at $84.50 per share on March 18, 2022, and took a series of nosedives before finally bottoming at $6.59 on Nov. 28, 2023.

Bu...

https://www.freightwaves.com/news/is-wall-street-warming-back-up-to-containership-line-zim

Are ocean spot rates past their peak?

2023 was a challenging year for ocean carriers, especially those that have spot exposure. They have seen significant slashes to revenue and profitability. 

Zim Integrated Shipping (NYSE: ZIM), a carrier with more spot exposure than some of the other large ocean carriers, saw a 61% year-over-year reduction in third-quarter revenue, and earnings before interest and taxes fell by $1.77 billion to a loss of $213 million. The Freightos Baltic Daily Index from China to the North American west coast...

https://www.freightwaves.com/news/have-ocean-spot-rates-passed-their-peak

COLUMN | Ammonia and LNG: toxic start to the new year for Fortescue, Equinor and the IMO? [Offshore Accounts]

Happy New Year to one and all, though one of the biggest challenges the marine, port, and bunkering industries will face in 2024 is the challenge of future fuels. You could do my job – the marine fuels op-ed primer Writing about the problems the marine industry faces is easy – you begin by stating...

https://www.bairdmaritime.com/work-boat-world/offshore-world/column-ammonia-and-lng-toxic-start-to-the-new-year-for-fortescue-equinor-and-the-imo-offshore-accounts/

How much will container lines ‘earn’ in 2023? It depends on the metric

Berkshire Hathaway’s Charlie Munger once famously said, “Every time you hear ‘EBITDA,’ just substitute the phrase ‘bullshit earnings.’”

Public shipping companies in different segments highlight different earnings metrics. Tanker and dry bulk owners focus on adjusted net income. Listed container shipping lines often highlight adjusted earnings before interest, taxes, depreciation and amortization.

EBITDA has been criticized for decades — Munger’s quote is from Berkshire Hathaway’s 2003 annual...

https://www.freightwaves.com/news/how-much-will-container-lines-earn-in-2023-it-depends-on-the-metric

Zim Q4 results surprise to upside but 2023 ‘extremely challenging’

a chart showing Zim KPIs

Zim, the world’s 10th-largest ocean carrier, announced a big earnings beat for the fourth quarter and paid out a higher-than-expected dividend. However, it faces a tough year ahead, with a chance of at least some quarters in the red.

The company’s shares (NYSE: ZIM) surged Monday on news of the earnings beat, jumping as much as 25% in morning trading. Shares had given back most of those gains by the end of the day, closing up only 6.6%. Trading was heavy, at more than four times average volume.

Bi...

https://www.freightwaves.com/news/zim-q4-results-surprise-to-upside-but-2023-extremely-challenging

TradeLens global data-sharing platform shuttering

A.P. Moller – Maersk and IBM announced Tuesday the dissolution of the blockchain-enabled TradeLens platform. 

“TradeLens was founded on the bold vision to make a leap in global supply chain digitization as an open and neutral industry platform. Unfortunately, while we successfully developed a viable platform, the need for full global industry collaboration has not been achieved. As a result, TradeLens has not reached the level of commercial viability necessary to continue work and meet the...

https://www.freightwaves.com/news/tradelens-global-data-sharing-platform-shuttering

Zim flew higher in shipping boom, falls faster as market sinks

Ocean carrier Zim outperformed its much larger rivals at the peak of the container shipping boom. It’s still raking in over a billion dollars a quarter, but as the market corrects, it’s falling back to Earth faster than others.

On Wednesday, Zim (NYSE: ZIM) announced a drop in quarterly earnings and cut its full-year guidance. Not only is its spot-rate revenue falling, but it is agreeing to lower contract rates in mid-contract and is handling less volume due to weaker demand and ongoing...

https://www.freightwaves.com/news/zim-flew-higher-during-boom-falls-faster-as-market-sinks

Port of Boston gets new connection to Vietnam

The Port of Boston will be part of a trade route that starts in Yantian, China, and stops at Cai Mep, Vietnam, according to the Massachusetts Port Authority (Massport).

Massport said the new arrangement with international shipping line Zim will benefit New England companies seeking to increase business ties with Vietnam.

Zim’s biweekly service aims to connect Southeast Asia with the U.S. Northeast via the Suez Canal. The rotation will also have stops in Baltimore and New York. 

According to...

https://www.freightwaves.com/news/port-of-boston-gets-new-connection-to-vietnam

Shipping mints even more money as supply chain squeeze drags on

shipping

Great news for ocean carriers like Zim is generally ominous news for U.S. importers paying painfully high freight bills — and there was a bounty of great news for Zim on Wednesday.

The shipping liner operator, which specializes in the trans-Pacific lane, posted net income of $1.71 billion for Q4 2021. Earnings per share were $14.17, handily beating the consensus forecast of $13.19.

Full-year adjusted earnings before interest, taxes, depreciation and amortization came in at $6.6 billion, topping...

https://www.freightwaves.com/news/shipping-mints-even-more-money-as-supply-chain-squeeze-drags-on

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