Operator ZIM Integrated Shipping Services shows record revenue
ZIM Integrated Shipping Services of Israel has published its financial report for the last quarter. According to the given data, its profit grew by 2645%, which was a record not only for the carrier, but also for the industry as a whole.
The jump was due to an increase in freight rates, and the company also significantly expanded its presence on routes in the Pacific Ocean and the Asian region.
ZIM reported operating income of more than $783 million last quarter and net income of nearly $590 million. By comparison, the company had a loss of $11.9 million in the same period last year. During the reporting quarter, the operator transported over 818 thousand TEUs, which is 28% higher than in 2020.
The growth in the volume of transported cargo came during the period of rising freight rates. On average, the rates increased by 76% from the previous year and amounted to 1925 dollars. As a result of these factors ZIM’s revenue reached $1.74 billion, 112% higher than in 2020.
According to the Israeli company’s management, this success was achieved by improving the company’s internal approaches. ZIM also went public in the United States.
The operator has implemented a differentiated approach for internal processes, as well as using effective development strategies, which have already yielded results. The company has earned a record profit, which is a confirmation of its strong position on the transportation market.
In addition, ZIM has entered into a major long-term agreement. It concerns the chartering of large dual-fuel LNG container ships. In addition, the company has introduced new services on the routes, which are strategically important.
The management of the operator stated that part of its profit will be spent on investment projects, including purchase of new equipment. By the end of the year the company expects to make $2.5 to $2.8 billion in revenues, 75% more than in 2020.
The company intends to continue strengthening its positions in the sea shipping market. One of the operator’s goals is to introduce innovative approaches and products, thanks to which ZIM will be considered a leader in digitalization as a tool for organizing and implementing logistics services. The launch of the ZIMARK service is a striking example of the company’s development in this direction. It involves the development and provision of innovative solutions for supply chain optimization. The platform makes it possible to scan cargo, track and control stock in the warehouse, and much more.
