The Israeli ocean carrier said its focus on select markets and investment in customer service will improve its position to endure the shipping crisis.
Israeli ocean carrier ZIM reported a $37.6 million loss for the third quarter of 2016 compared with an $11 million profit for the third quarter of 2015.
ZIM noted that despite the continuously difficult market conditions, its third quarter result was better than the $74.2 million loss it suffered in the second quarter of this year.
Revenues totaled $643.9 million for the third quarter of 2016, down 14 percent from $749 million for the third quarter of 2015.
The lower revenues reflect the fact that even though volumes were up, average revenue per container declined.
Volumes for the third quarter of this year reached 622,000 TEUs, 7.1 percent more than the 581,000 TEUs carried in the third quarter of 2015.
However, average freight rates tumbled 20.8 percent to $887 per TEU for the third quarter of this year compared with $1,120 per TEU for the third quarter of last year.
“While market conditions remain challenging, the company continued to improve its services,” ZIM said. “In line with its long-term strategy, the company invests in upgrading customer services, while maintaining efficiency and cost reductions.”
ZIM also said its strategy as an independent carrier allows it to operate an efficient and reliable network on select trades where it has a competitive advantage, and gives it the flexibility to react quickly to market changes.
Rafi Danieli, ZIM’s president and chief executive officer, said, “ZIM continues to achieve improved adjusted EBIT margins, well above industry average. Our strategy, operating as a global niche carrier focusing on select markets, along with intensive investment in customer service, will improve ZIM’s position to endure the crisis and plan ahead for future growth.”
ZIM reports $37.6m loss in Q3
