Zim Integrated Shipping ltd. reported first quarter net losses of US$119 million from US$29 million a year ago, on weaker freight rates market and a slump in cargo volumes.? Revenue for the three months to March 31 fell to $622 million from $1.04 billion in the year-earlier period as container traffic crashed by 33% to TEU 410,000 from TEU 610,000. Operating losses increased to $156million from $32 million. ? ?
The collapse in global container traffic and a 3% fall in average freight rates outweighed the impact of a 51% decline in fuel bills, a 13% decrease in ship charter costs and a 24% reduction in terminal handling charges during the quarter. ? ?
Israel Corp. said that the downturn in the shipping market became "even more pronounced" in the first quarter with surplus capacity putting further pressure on containership utilization and freight rates.? ?This is having an adverse impact on Zim's operations, "its compliance with financial covenants and its ability to raise money, as well as on its financing conditions," Israel Corp. said. ? ?
Zim is continuing negotiations with shipyards to cancel or delay deliveries of ships, returning vessels as they come off hire, cutting services, laying up ships and seeking other cost cuts including layoffs.
The collapse in global container traffic and a 3% fall in average freight rates outweighed the impact of a 51% decline in fuel bills, a 13% decrease in ship charter costs and a 24% reduction in terminal handling charges during the quarter. ? ?
Israel Corp. said that the downturn in the shipping market became "even more pronounced" in the first quarter with surplus capacity putting further pressure on containership utilization and freight rates.? ?This is having an adverse impact on Zim's operations, "its compliance with financial covenants and its ability to raise money, as well as on its financing conditions," Israel Corp. said. ? ?
Zim is continuing negotiations with shipyards to cancel or delay deliveries of ships, returning vessels as they come off hire, cutting services, laying up ships and seeking other cost cuts including layoffs.