ZIM SEES 18% RISE IN 2000 INCOME
Zim Israel Navigation Co. reported net income for 2000 of $29.6 million, up 18.4 percent from the $25 million reported in 1999. The Israeli shipping line reported a loss of $4.9 million in 1998.
Revenue rose 12.7 percent to $1.79 billion, from $1.59 billion in 1999. Operating profit, before financing, taxes and others, was $118.3 million, up 23.2 percent.
Zim's success in 2000 came despite contrasting impacts on the liner shipping business. While world trade increased in most areas, fuel prices rose by as much as 250 percent and charter rates nearly tripled, and Israel's ports saw disruptions for several months in early 2000, Zim said. In addition, freight rates began to erode toward the end of the year, due to the introduction of new large container vessels into the world fleet.
The line said it offset those rising costs through improved efficiency and expanded alliances with other shipping companies.
The shipping line expanded its scope of carriage in 2000 14.4 percent, to about 1.36 million TEUs. Zim added three services in the Asian trade and one in the Black Sea in 2000, and has introduced a service between the western Mediterranean and the U.S. East and Gulf coasts this year.
Zim also ordered six new 4,800-TEU Panamax-sized vessels last year from Hyundai Shipyards in Korea. The ships, with service speeds of 24 knots, will be introduced into service from February to October 2002.