By GMM News | 2024-09-09 | International Shipping News |

NYSE-listed ZIM Integrated Shipping Services reported a net income of $373 million for the second quarter of 2024 as against a net loss of $213 million in Q2203 on higher freight rates and volumes. Revenue increased 48 percent to $1.93 billion on 11 percent volume growth at 952,000 TEUs, says an official release. “Average freight rate per TEU in the second quarter was $1,674, a year-over-year increase of 40 percent,” the release added.

Eli Glickman, President & CEO, ZIM says: “We are pleased with our strong second quarter performance, highlighted by outstanding strategic execution that led to record high carried volume, representing 11 percent growth year-over-year.The steps we have taken to upscale our capacity and enhance our cost structure continued to drive strong financial results. We generated net income of $373 million as we drew on our differentiated strategy and agility while capitalising on sustained market strength. Aligned with our prioritisation of returning capital to shareholders, we declared a dividend of $0.93 per share, or $112 million, representing 30 percent of second quarter net income.” “During the quarter, we benefited from ZIM’s strategic decision to increase the company’s spot market exposure in the Transpacific trade. This has enabled us to capture significant upside in a rate environment that has been elevated for longer than anticipated. We expect our results in the second half of 2024 to be better than in the first half of the year, driven by continued supply pressure from the Red Sea crisis, combined with current favourable demand trends.As a result, we have significantly increased our full year 2024 guidance and today forecast full year adjusted EBITDA between $2.6 billion and $3 billion and adjusted EBIT between $1.45 billion and $1.85 billion. “While market fundamentals still signal supply growth significantly outpacing demand, we are confident that we have built a resilient business with a transformed fleet.

By year’s end, ZIM ongoing newbuild programme will be complete as we receive delivery of the remaining eight out of 46 modern, fuel-efficient containerships that we secured, including 28 LNG-powered vessels. We are on track to achieve our double-digit volume growth target in 2024 and well positioned to drive profitable growth ahead.” For the first half of 2024, ZIM reported revenue of $3.5 billion, an increase of 30 percent on 10 percent increase in volume at 1.8 million. While average freight rate was up 22 percent at $1,569, net income increased to $465 million as against a loss of $271 million in H12023.