The post-Covid trade normalisation is continuing to reflect in carrier results, with several lines reporting underwhelming results.
In its results announcement last week, ZIM Integrated Shipping services revealed that it had recorded a net loss for the third quarter of $2 270 million (compared to net income of $1 166m the third quarter of 2022).
Operating loss (Ebit) amounted to $2 276 million, compared to operating income of $1 544m in the third quarter of 2022.
Adjusted Ebit loss for the third quarter was $213m million, compared to adjusted Ebit of $1 554m last year.
Revenues were $1 273 million, a year-over-year (y-o-y) decrease of 61%.
The line carried 867 thousand TEUs, a slight year-over-year increase, but the average freight rate per TEU in the third quarter was $1 139, a y-o-y decrease of 66%.
"ZIM's third-quarter results reflected the current operating environment, as demand remained weak and freight rates continued to deteriorate,” said Eli Glickman, ZIM president and CEO.”
On the positive side, he pointed to the carrier’s fleet renewal programme, which includes 46 newbuild containerships, of which 28 are "green" LNG vessels. “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 containerships, are added to our fleet through 2023-2024."
The results for the first nine months paint a similar picture.
Total revenues, at $3 957m, compared to $10 373m last year, driven primarily by the decrease in freight rates.
The average freight rate per TEU was $1 235 compared to $3 600 for the first nine months of 2022.
Operating loss (Ebit) was $2 457m compared to operating income of $5 551m for the same period last year. Net loss for the first nine months was $2 541 million, compared to net income of $4 212m in the same period in 2022.
The company has revised its guidance for the full year and now expects to generate adjusted Ebitda of between $900m and $1 100m and adjusted Ebit loss of between $600m and $400 million. This reflects continued weakness in freight rates and soft demand across all company's trades.
