Revenues fell for the Israeli carrier as it withdrew from trades that are not part of its long-term focus.
Israeli ocean carrier ZIM had a net profit in GAAP terms of $12 million in the first quarter of 2015 compared with $61.5 million in the same quarter of last year.
Total revenues in the first quarter were $792 million, down slightly from $867 million in the first quarter of 2014.
ZIM carried 560,000 TEUs in the first quarter of 2015, an 8 percent decrease from the same quarter last year. The company attributed the decline in volumes primarily to “terminating the service from Asia to Northern Europe and withdrawing from trades which are not part of the company’s business focus.”
The average freight rate per TEU amounted to $1,251, which represented no change from the previous quarter and an increase of 3 percent compared with the same quarter of last year.
Rafi Danieli, the president and chief executive officer of ZIM said, “We are very pleased with our performance in this quarter and the return to profitability. The continuing improvement of our business results stems directly from the comprehensive initiatives the company advances, implementation of the business plan which focuses on opening new lines in profitable trade areas and seizing business opportunities, as well as improves operational efficiency, enhancing customer relations and the sharp reduction in fuel prices. At the same time we see the continued stagnation of the global economy and the volatile fuel prices, and we are taking steps to face these challenges.”
The company said the improved results also reflected “additional sailings from Asia to US East Coast, as part of the development of this trade.”
ZIM recently announced announced the inauguration of its Seven Star Express service between South China, Southeast Asia and the Indian sub-continent and the US East Coast via the Suez Canal. The service will use ten ships with capacity ranging from 5,000 TEUs to 6,000 TEUs.
ZIM reports first quarter profit
