ISRAELI flag carrier Zim widened its quarterly net loss to US$34.1 million from last year's shortfall of $6.4 million, despite a 14.7 per cent year-on-year increase in revenue to $751.4 million and 16.7 per cent more volume to 698,000 TEU.
'The container shipping industry is dynamic and volatile and has been marked in recent years by instability, due to ongoing changes in market conditions,' Zim said.
'Since the second half of 2016 and through the third quarter of 2017, increases were recorded in freight rates as well as in bunker prices.
'From the fourth quarter of 2017 and during the last first quarter, freight rates have decreased while bunker prices continued to increase,' said the Zim statement accompanying the results.
Zim's average freight rate per TEU during the quarter slipped 1.6 per cent year on year to $938.
Said CEO Eli Glickman: 'While we started to see an improvement in some of the trade towards the end of the quarter, Q1 2018 results, on the whole, were negatively impacted by the combined effect of increased bunker prices, higher charter costs and lower freight rates.'
Looking ahead, Mr Glickman said that Zim keeps investing in digital solutions to enhance efficiency and customer experience and remains focused on achieving its goals as an independent carrier.
Zim operates 85 vessels with 4,200 staff ashore and afloat. Financial institutions and shipowners own 68 per cent of its shares with Kenon Ltd owning the 32 per cent.
SHIPBUILDING
25 May 2018 - 19:00
Update: 27 May 2018 - 15:10
Zim widens quarterly loss to US$34.1 million despite 14.7pc more sales
ISRAELI flag carrier Zim widened its quarterly net loss to US$34
SHIPBUILDING
25 May 2018 - 19:00
Update: 27 May 2018 - 15:10
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