ZIM said that it had a net loss in the second quarter of 2014 of close to $67 million, or about $30 million less than in the corresponding quarter of the previous year. Revenue in the second quarter of 2014 amounted close to $875 million, compared to about $977 million in the corresponding quarter of 2013.
ZIM said the reduction in revenues was a result of discontinuing some lines, not having revenues from a container manufacturing plant that was sold in the third quarter of 2013, and a 3-percent drop in average freight rates from the second quarter of 2013, to $1,206 per TEU.
The volume of containers carried in the second quarter of 2014 was 619,000 TEU, 2-percent less than in the second quarter of 2013. ZIM said most of the drop was due to terminating lines between Northern Europe and the United States in mid-2013, and lines between Asia and Northern Europe at the start of the second quarter of 2014.
The Israeli container shipping company said it had an operating loss of about $9 million, compared to $29 million in the second quarter of 2013.
ZIM said the results “constitute significant improvement, though they reflect ZIM's performance before restructuring in July.”
On July 16, ZIM successfully concluded an approx. $3.4 billion debt restructuring, including a debt-equity swap with creditors of about $1.4billion. Under the terms of restructuring, Israel Corp.’s holding in ZIM was reduced from 100 percent to 32 percent. The other shareholders are the company's creditors.
ZIM said in late July members of its new board of directors “convened at the company's offices in Haifa, where they expressed their faith in the management, their full support in the continuing efficiency measures the company is pursuing and the company's business plan implementation.”
“The dramatic reduction in debt, together with liquidity infusions, which was part of the restructuring plan, position ZIM to compete successfully in the shipping industry,” the company said. “It is continuing execution of its strategic plan in order to continue improving its results, despite the persisting decline in freight rates around the world. In spite of the uncertainty during the second quarter around the company’s ability to conclude the debt restructuring, the labor disturbances by company’s unions in Israel, shutting down of the company’s headquarters and the Sea Officers Union preventing a ship from sailing, ZIM managed to improve its results and maintain rate of profitability in the vicinity of the industry’s average.”
Last week, a Zim ship was not worked in the Port of Oakland for several days during protests against Israel’s military action in Gaza, but cargo was eventually discharged and loaded.
A similar "Block the Boat" protest aimed at preventing a ZIM ship from loading or discharging containers in Tacoma, Wash., was unsuccessful over the weekend, according to a report of KIRO-TV