Zim hit by US$119.9 million net loss, but makes 9.1pc sales gain
ISRAELI flag carrier Zim suffered a 2018 net loss of US$119
ISRAELI flag carrier Zim suffered a 2018 net loss of US$119.9 million, compared to a net profit of $11.4 million the year before, despite last year's revenue gain of 9.1 per cent to $3.25 billion in the same period,
'We were able to achieve improved cost efficiencies while significantly increasing the transported volumes,' said Zim president and CEO Eli Glickman.
In September 2018, Zim made a deal with the Maersk-MSC 2M Alliance through which all parties operate together several loops between Asia and the US east-coast.
In January 2019, the company and the members of the 2M Alliance announced a second agreement, joning in an Asia-East Med and an Asia-American Pacific Northwest services.
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. In the second half of 2018, freight rates started to recover, while bunker prices remained highly volatile, though overall decreased.
Of the 2M tie-up, Mr Glickman said: 'The agreement enables Zim to offer better product and service portfolio to our customers, and cope with the volatile freight rates and fuel prices.'