In Q3 2018, ZIM’s total revenue stood at $ 840.7 million, the highest in the last 4 years, reflecting an increase of 4.7 per cent compared to $ 803.2 million in Q2 2018.
Adjusted net profit was $ 1.3 million in Q3 2018, compared to adjusted net loss of $ 20.6 million in Q2 2018. Adjusted EBITDA was $ 48.8 million in Q3 2018 as against $ 23.1 million in Q2 2018.
Operating cash flow of $ 54.1 million in Q3 2018 compared to $ 52.6 million in Q2 2018.
ZIM carried 730,000 TEUs during the period (reflecting a decrease of 5.5 per cent compared to Q2 2018).
The container shipping industry is dynamic and volatile and has been marked in recent years by instability, as a result of continued deterioration of market environment. Furthermore, the shipping liner industry went through major developments and structural changes which include reshaping of the alliances and M&A activities that took place over the last quarters. The instability and volatility in the market, including significant uncertainties in the global trade, continue to affect the market environment.
Since the fourth quarter of 2017, freight rates have decreased while bunker prices as well as charter rates increased, negatively affecting the industry as a whole. In the third quarter of 2018, freight rates started to recover in most trades, while bunker prices continued to increase.
Confronted with a tough business environment, ZIM continues to record improvements and to introduce new services to its customers.
In September 2018, the company launched its strategic operational cooperation with the 2M Alliance. As per this cooperation, the company and the parties of the 2M Alliance (Maersk and MSC) operate together certain lines between Asia and the US East Coast, enabling ZIM to provide its customers with improved port coverage and transit time, while generating cost efficiencies.
Mr Eli Glickman, ZIM President & CEO, said: “Q3 2018 was characterised by freight rates increase and the continued rise in fuel costs. ZIM’s Q3 results reaffirm ZIM’s approach of coping with a challenging and volatile business environment. Our strategic operational cooperation with the 2M Alliance in the Asia-US trade is beginning to contribute to our overall results, and we expect it to bear more fruits in the coming quarters. We have a clear path forward, and we remain committed to excellent customer service, as well as providing innovative quality solutions for our customers.”
