ZIM Less Zippy as 2M Cooperation Crimps Volume Growth — Panjiva


ZIM Less Zippy as 2M Cooperation Crimps Volume Growth

Corp - Shipping 608 Earnings 365 Global 722 Mode - Containerized 1005 Mode - Seaborne 1273

ZIM Shipping reported revenue growth of just 2.9% in the third quarter of 2018. A drop in average achieved container-rates of 5.8% was to blame and was well below the industry benchmark of a 1.0% decline. When combined with higher fuel costs the drop in rates resulted in a halving of the group’s EBITDA margin to 4.9% vs. a year earlier. Management have also struck a downbeat outlook including “significant uncertainties” due to “trade restrictions” between the U.S. and others. One strategic response is ZIM’s use of joint ventures on shipping routes, which it will continue to pursue. That ...

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