In preparing for a more digitalised market, Haifa-based carrier Zim has also seen the benefits of new technology for the post-Covid-19 market with investment in a digital future that will position the company to take advantage of the new online market.
ZIM’s president and chief executive, Eli Glickman highlighted the introduction of innovative services and several digital tools, during the first six months of the year, with the latest AI-based screening software implementation and the unveiling of two new digital services in July showing that ZIM will continue to follow this strategy in the second half of the year, as well.
Nevertheless, back from the virtual world, ZIM has unveiled real-world declines in box volumes and revenues, but an extreme upturn in profit in the second quarter of the year, following the “pattern” of other 2020 Q2 results, in which shipping companies present fewer carrying containers and lower income, but higher earnings.
The Covid pandemic and the US-China trade war caused instability in the industry, which impacted ZIM’s total revenues and container volumes in the second quarter of the year, compared to the same period in 2019. Total revenues of the Israeli carrier saw a drop of 4.7%, reaching US$795.1 million, while box volumes were shrunk by 12.3% to 641,000TEU.
However, lower charter rates and bunker prices, caused by the coronavirus outbreak, as well as the freight rate levels, helped ZIM to achieve the highest quarterly net result since 2010, with its net profit skyrocketing to US$25.3 million, which is a huge growth of 394% compared to Q2 2019.
Glickman believes that these results “stem from their overall strategy,” while he emphasised that “this accomplishment has been achieved while we were facing the ongoing formidable challenges posed by the global pandemic.”
Additionally, EBITDA reached US$145 million compared to US$102 million in the second quarter last year, while the company’s operating cash flow is almost doubled to US$119.8 million.
ZIM’s H1 2020 figures:
- Adjusted net profit: US$26.9 million (US$14.5 million in 2019H1)
- Total revenues: US$1.6 billion (US$1.6 billion in 2019H1)
- Container volumes: 1.28 million TEU (1.4 million TEU in 2019H1
- Operating cash flow: US$221.3 million (US$123.8 million in 2019H1)
Source: Container News