Zim Integrated Shipping Services announced a sharply lower first quarter operating loss of $24 million against $83 million a year ago, driven by higher freight rates and increased cargo volumes.
The Israeli ocean carrier boosted revenue 22 percent to $912 million in the three months to March 31 from $745 million in the same quarter in 2010.
Zim news from JOC:
Zim Announces Third India-Europe Rate Hike.
Traffic increased 9 percent to 555,000 20-foot equivalent units from 509,000 TEUs while the average freight rate jumped to $1,360 from $1,200.
Zim, which came close to collapse during the downturn, said the results in what was a seasonally slack quarter, are “ very close” to the average in the liner shipping industry compared with previous quarters when they were “significantly lower” than the industry average.
The carrier booked a net loss of $111 million, mainly the result of accounting expenses of $70 million due to the re-evaluation of certain derivatives related to its financial restructuring.
Excluding this expense the net loss in the quarter narrowed to $41 million.
Zim, the world’s 17th largest carrier, said it is continuing to implement organizational and strategic changes outlined in its 2010 restructuring.
The carrier, a unit of Israel Corp., said it is “currently in the midst of a move, which the company’s management believes, will bring about a continued improvement ... in results.”
Zim booked a net profit of $54 million in 2010 compared with a year earlier loss of $432 million on revenue of $43.7 billion.
-- Contact Bruce Barnard at email@example.com.