ZIM Zapped By Fuel Costs as Volumes Charge Upwards — Panjiva


ZIM Zapped By Fuel Costs as Volumes Charge Upwards

Corp - Shipping 608 Earnings 365 Energy - Bunker Fuel 63 Global 722 Mode - Containerized 1005 Mode - Seaborne 1273 Theme - Rates 141

ZIM Shipping reported a drop in profitability in 2Q 2018 after an 8% increase in revenues was overcome by higher costs. The resulting EBITDA margin of 2% compared to 8% a year earlier and was the lowest since 2Q 2016. Rising fuel costs were a major culprit – in common with the rest of the container-line sector – though a 10% drop in average rates was worse than its peers. That may be the result of a push for market share that can be seen in a 29% rise in U.S.-inbound volumes in the three months to July 31. The company has relaxed its financial covenants in case of a worsening...

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