Bruce Barnard | Aug 25, 2011 9:29AM EDT
Zim Integrated Shipping Services swung to a $68 million net loss in the second quarter from a $3 million profit a year ago, as lower ocean freight rates offset increased container volume.
The Israeli ocean carrier’s revenue grew 7 percent to $1 billion from $933 million a year ago, and was up 10 percent against $912 million in revenue in the first quarter of 2011.
The second quarter net loss was an improvement on a $111 million deficit in the opening three months of the year, but the operating loss widened to $79 million from $7 million during the period.
Container traffic increased to 596,000 20-foot equivalent container units in the second quarter compared with 547,000 TEUs a year earlier, and 555,000 TEUs in the preceding three months.
Average freight rate per TEU slipped to $1,307 in April-June from $1,360 in the previous quarter due to deliveries of new ships through the first half of the year.
In spite of difficult market conditions, the carrier in the first half earned $13 million before interest, tax, depreciation and amortization.
Zim, a unit of Israel Corp., said its results were close to the average operating income in the container industry, reflecting the efficiency measures and strategic changes introduced in the carrier’s financial restructuring in 2010.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.