ZIM reports $12m profit in second quarter

Profits increased compared to the same 2014 period despite lower revenues and volumes due to the ocean carrier leaving certain trades and weak demand on Asia-Mediterranean routes.    ZIM has reported a profit of $12 million in the second quarter of 2015 compared with a loss of $67 million in the same 2014 period.
   The Israel-based ocean carrier had revenues of $763 million in the second quarter compared with $875 million in the second quarter of last year.
   ZIM carried 577,000 TEUs in the second quarter of 2015, 6 percent fewer than in the same period last year.
   “Most of the decrease was a result of service terminated from Asia to Northern Europe and withdrawing from trades which are not part of the company’s business focus, as well as a decline in demand in the Asia-Mediterranean trade route,” the company explained.
   ZIM also saw average freight rates decline to $1,150 per TEU in the second quarter of 2015, a 5 percent reduction compared to the same period last year.
   During the second quarter of 2015, ZIM launched operations of the ZIM Seven Star Express (Z7S), a new line connecting South China, South East Asia and the Indian sub-continent and the U.S. East Coast via the Suez Canal.
   The company said the service is part of a strategy to develop the Asia-U.S. trade route.
   “Z7S is fully operated by ZIM and provides one of the fastest services in the trade route between South China, Vietnam, Singapore and Sri Lanka to the U.S. East Coast and back. ZIM deploys ten 5,000-6,500 TEU vessels for the line on a weekly schedule,” said ZIM.
   According to ocean schedule and capacity database BlueWater Reporting, the Z7S operates with ten ZIM vessels with an average capacity of 5,687 TEUs. The full port rotation of the loop, on which G6 Alliance member OOCL purchases slots, is Da Chan Bay, Yantian, Cai Mep, Singapore, Colombo, New York/New Jersey, Savannah, Norfolk, Singapore, and back to Da Chan Bay.