Israeli container shipping group Zim Integrated Shipping has downgraded its earnings guidance, citing continued weakness in freight rates and the prospect of lower-than-previously-expected volume growth.

Market conditions for containerized cargo are expected to remain challenging in the short term, says CEO Eli Glickman, who also expects demand to remain subdued for the remainder of the year.

”While our second quarter results are broadly in line with our expectations, we no longer expect freight rates to improve in the second half of 2023 in line with seasonality, as previously assumed,” the CEO continues in the statement.

A downgrade was already in the cards. So, in the US pre-market the share is trading just 1.5 percent lower at USD 13.16.

In Denmark, Maersk’s B-share has been hit even harder by the announcement, falling 0.8 percent to DKK 12,815 (USD 1,895.3) compared to a price of DKK 13,035 before the announcement from the Israeli competitor.

The outlook for adjusted operating income measured at EBITDA level is now expected to reach USD 1.2-1.6bn this year, compared to the previous forecast of USD 1.8-2.2bn.

However, this was expected by analysts, as the consensus was USD 1.34bn.

(Translated using DeepL with additional editing by Christian Radich Hoffman)