ISRAELI flag carrier Zim has suffered a US$68 million second quarter loss against a $3 million profit in the same period last year, which the company attributed to weak rates and increased capacity.
ISRAELI flag carrier Zim has suffered a US$68 million second quarter loss against a $3 million profit in the same period last year, which the company attributed to weak rates and increased capacity.
But Zim also posted $79 million second quarter operating profit after a $7 million operating loss in the previous quarter.
Despite the period showing a rally with container volume up to 596,000 TEU, a nine per cent increase year on year and revenue up seven per cent to $1 billion, average freight rates tumbled. During the period between April-June rates slipped to $1,307 per TEU from $1,360 per TEU.
Zim also recorded financing income of $11 million compared with financing expense of $105 million in the previous quarter.
"The improvement stems from an accounting income of $53 million recorded in the current quarter due to revaluation of derivatives in the company's balance sheet, compared with an expense of $70 million for the same item recorded in the previous quarter," said the company statement.
The carrier said results showed it was on course after 2010 measures: "Among other things, the downswing in freight rates is due to an increase in the number of active vessels in the market, owing to the increased deployment of new ships in the first half of 2011."
Said the press statement: "Zim's financial results continue to be close to the average operating income in the liner shipping industry, a fact reflecting the efficiency measures and strategic changes being introduced by the company, according to the strategic plan formulated in 2010."