ISRAELI flag carrier Zim narrowed its first quarter net loss by 32
ISRAELI flag carrier Zim narrowed its first quarter net loss by 32.9 per cent year on year to US$17.5 million, drawn on revenues of $796.2 million, up six per cent. But adjusted quarterly operating profit (EBITDA) soared 152 per cent to $69.3 million, said the company while adding that Zim carried 668,000 TEU, a year-on-year drop of 4.3 per cent.
'Since the fourth quarter of 2017 and until the second quarter of 2018, freight rates have decreased while bunker prices, as well as charter rates, increased, negatively affecting the industry as a whole,' said the company.
'In the second half of 2018, freight rates started to recover, with a slight decrease during the first quarter of 2019, while bunker prices remained highly volatile. Confronted with tough business environment, Zim continued to record improvements and to introduce new services to its customers,' said the statement.
'In September 2018, the company launched its strategic operational cooperation with the 2M Alliance (Maersk and MSC), in several lines between Asia and the US east coast. 'During the first quarter of 2019 such cooperation was further extended also in two additional trades: Asia - East Mediterranean and Asia - American Pacific Northwest,' said the company.
Said Zim president and CEO Eli Glickman: 'Zim continues to pursue its strategic goals, and the Q1 2019 results reflect an improvement, achieved against a backdrop of challenging market conditions.
'The second phase of our strategic cooperation with the 2M Alliance, in the Asia - East Mediterranean and Asia - American Pacific Northwest trades, began during this quarter.
'This cooperation is expected to create additional cost efficiencies, while enabling significantly upgraded service levels to our customers,' said Mr Glickman.
'Our focus and differentiating advantage remains our multi-service approach, combining best-in-market lines, premium and personal customer service and advanced digital solutions,' he said.
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