The container shipping industry is dynamic and volatile and has been marked in recent years by instability, due to ongoing changes in market conditions. Since the second half of 2016 and through the third quarter of 2017, increases were recorded in freight rates as well as in bunker prices. Commencing the fourth quarter of 2017 and during Q1 2018, freight rates have decreased while bunker prices continued to increase.
In the face of this challenging business environment, ZIM continued to outperform the industry and increased its carried quantities.
ZIM reported an adjusted EBITDA of $25.6 million in Q1 2018, compared to $57.4 million in Q1 2017, with an adjusted EBITDA margin of 3.4%.
The carried quantities increased by 16.7% to 698 thousand TEUs in Q1 2018, compared to 598 thousand TEUs during the same period in 2017.
Eli Glickman, ZIM President & CEO, said: “During Q1 of 2018, ZIM has increased the volume of cargo carried to 698 thousand TEUs, thanks to intensive sales efforts and customers’ confidence in ZIM. This has been achieved despite very challenging market conditions. While we started to see an improvement in some of the trades towards the end of the quarter, Q1 2018 results, on the whole, were negatively impacted by the combined effect of increased bunker prices, higher charter costs and lower freight rates.
Despite these conditions, ZIM continued to be one of the top performers in the industry. We keep investing in digital solutions which will enhance our efficiency and customer experience. We remain focused on achieving our goals according to our strategic vision as an independent carrier, providing reliable and exceptional service to our customers.”
Financial and Operating Highlights for the Three Months Ended March 31, 2018
Since 1945, ZIM provides creative operational and logistical solutions to customers. Over the years ZIM has grown to become a leading force in the shipping industry, by pioneering innovative technologies and expanding its vast geographical network while maintaining its tradition of excellence.
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