Zim suffers big full-year deficit for 2016

Israeli container carrier Zim finished 2016 with a major deficit on the bottom line in 2016 despite increasing cargo volumes during the year. Yet the carrier turned a profit in the fourth quarter, and this development will continue, projects CEO Rafi Danieli.

Photo: Zim Integrated Shipping Services

Container carrier Zim went into the red from 2015 to 2016 as the bottom line for the full year finished at a deficit of USD 163.5 million against a profit of USD 6.5 million in 2015.

The Israeli carrier handled a total of 2.4 million teu in 2016, a 5.2 percent improvement compared to 2015, according to the annual report.

"In spite of the very challenging market conditions in 2016, our results continued to improve, with a net profit in Q4 2016 and an increase in carried TEUs. The results were achieved through a successful efficiency plan and costs reductions implemented at all levels in ZIM," says CEO Rafi Danieli in the report.

Starting this spring, Zim will change its network following the launch of the new alliances in the container sector and the subsequent change in plans, and unlike these alliances, Zim is operating alone.

"We operate as an independent, global niche carrier, with emphasis on high level customer service and focus on select markets where ZIM has a competitive advantage," says Danieli.

Zim has been subject to acquisition rumors on several occasions, and during the fall the carrier rejected an alleged sale of its fleet, after the Wall Street Journal reported that the carrier was in the midst of a roadshow presenting a sales prospectus. The goal was allegedly to sell its activities on the Pacific to instead focus on the Mediterranean.

Zim is the world's 17th largest container carrier.

English Edit: Daniel Logan Berg-Munch

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