Rafi Danieli, chief executive of ZIM Integrated Shipping Services Ltd., will continue to serve in his role until a replacement has been found and as an advisor to the Israeli ocean carrier following the appointment of a new CEO.
Rafi Danieli, chief executive officer of ZIM Integrated Shipping Services Ltd., has informed the ZIM board of directors he plans to step down from his current role as CEO, according to a statement from the company.
The Israeli ocean carrier said Danieli will continue to serve in his role until a replacement has been found to “help ensure a smooth transition,” and as an advisor to the company following the appointment of a new CEO.
Danieli served as CEO for seven of his 38 years working for ZIM. During that time, he oversaw widespread changes in the company and a complex financial restructuring that transitioned ZIM from a wholly state-owned entity to a primarily privately owned one.
In 2014, ZIM finalized the terms of an approximate $3.4 billion debt restructuring, including a debt-equity swap with its creditors of about $1.4 billion. The terms of the restructuring reduced state-owned Israel Corp.’s holding in ZIM from 100 percent to 32 percent, with the remaining shares being transferred to the company’s creditors.
The single largest shareholder now is Kenon Holdings, an investment firm controlled by billionaire Idan Ofer.
“During his service, the company has moved from making operational losses to an operational profit, with operating margins higher than the industry average,” ZIM’s board said of Danieli’s announcement.
His resignation comes shortly after reports from the Israeli newspaper Haaretz that ZIM would delay its planned initial public offering on the New York Stock Exchanges. Although ZIM decline to comment on the reports, Haaretz speculated that company officials made the decision due to a deteriorating market for container shipping and the poor performance of German ocean carrier Hapag-Lloyd’s Frankfurt IPO in November.
American Shipper reported in October ZIM had selected investment firms Bank of America Merrill Lynch and Barclays Plc to advise it in the public float, but had not yet set a date or valuation for its Wall Street debut.
According to ocean carrier schedule and capacity database BlueWater Reporting, ZIM is currently the 18th largest shipping line by operating fleet capacity at 359,532 TEUs. It participates, either by providing vessels or purchasing slots on 43 direct region-to-region services across various global tradelanes, as well as several intra-Asia, intra-Caribbean and intra-North Europe loops.
Like most carriers, ZIM has struggled to turn a profit since the global economic recession as trade volumes have remained stagnant, while rates fell and carriers began purchasing larger, more efficient vessels. From 2009 to 2014, ZIM has reported annual losses totaling more than $1.2 billion.
ZIM’s board of directors said it has already nominated a committee to lead the search for a new chief executive.
ZIM CEO resigns amid reports of IPO delay
