ZIM has reported a “sharp improvement” in its Q1 results, despite an 8% decrease in its carried volumes for the first quarter.
The Israeli box line’s first quarter profit was $12m, compared to a $62m loss in Q1 2014.
ZIM has focused its operations and withdrawn from trades outside of that focus, including Asia-North Europe. Consequently volumes carried were down 8% compared to Q1 2014 to 560,000 TEU.
An average freight rate of $1251 per TEU represents a 3% improvement over the previous year’s $1213 per TEU.
Speaking on the result, ZIM President and CEO, Rafi Danieli said, “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.”
ZIM completed a $1.4bn restructuring during the summer of 2014, including a renegotiation of its charter contracts that reduced charter payments by 46%.
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