The Israeli ocean carrier had a net profit of $25.2 million for the quarter compared to a net loss of $37.6 million for the third quarter of 2016, thanks to increasing freight rates, higher volumes and cost utilization, president and CEO Eli Glickman said.
ZIM handled 688,000 TEUs during the third quarter of 2017, a 10.6 percent boost from the third quarter of 2016.
ZIM recorded a net profit of $25.2 million for the third quarter of 2017, compared to a net loss of $37.6 million for the third quarter of 2016, the Israeli ocean carrier revealed Thursday.
ZIM’s profit for the quarter was driven by increasing freight rates, higher volumes, and cost utilization, ZIM President and CEO Eli Glickman told American Shipper.
Glickman took the helm as ZIM’s new president and chief executive officer on July 1, 2017, succeeding Rafi Danieli, who had served as president and CEO of ZIM since 2009.
Revenues for the third quarter of 2017 climbed 26.8 percent year-over-year to $816.7 million, with container volumes rising 10.6 percent to 688,000 TEUs. Glickman attributed the volumes boost to the Pacific and intra-Asia lines.
The average freight rate per TEU totaled $1,058 for the quarter, a sharp increase from $887 for the third quarter of 2016.
“ZIM’s encouraging Q3 results are a cause for optimism, and we hope they reflect a momentum that we can keep up in the coming quarters; however, we still face many challenges, including the uncertainty of market conditions, including freight rates and bunker prices,” Glickman said in a press release.
ZIM recently announced the completion of a paperless bills-of-lading pilot based on blockchain technology, which was completed in cooperation with Sparx Logistics and Wave Ltd. “The pioneering pilot, first of its kind led by an ocean carrier, was concluded successfully,” ZIM said.
All participants during the trial – which involved the shipment of containers by Sparx Logistics from China to Canada – issued, transferred and received original electronic documents using the Wave Application.
Looking ahead, Glickman said he believes ZIM is on the right track as it continues to outperform the industry, and that the company is currently in the process of finalizing its 2018 budget.