ZIM reports second-quarter loss

Company carried 17 percent more containers, but freight rates were lower and the cost of fuel and charters was higher.    ZIM reported a net loss in the second quarter of 2018 of $33.2 million, compared to a net profit of $2.3 million in the second quarter of 2017, as a strong increase in cargo carried was not enough to offset lower freight rates and higher fuel and charter costs.
   Total revenues in the second quarter of this year were $803.2 million, 7.7 percent more than in the $745.7 million ZIM reported in the second quarter of 2017.
   The company was able to boost revenue because of an 17.1 percent increase in containers carried — 772,000 TEU in the second quarter of 2018 compared to 659,000 TEU in the second quarter of 2017. Average freight rate per TEU fell to $907 per TEU in the second quarter of 2018, a 9.9 percent drop from $1,007 in the second quarter of 2017.
   Eli Glickman, the president and chief executive officer of ZIM, said the second quarter of 2018 “was characterized by the continued rise in fuel prices and chartering rates, as well as low freight rates, all with a negative impact on the results of carriers, including ZIM.”
   In July, ZIM announced a long-term strategic cooperation with Maersk and MSC on five services between Asia and the U.S. East Coast.
   ZIM said that agreement “is expected to bring considerable efficiencies and savings, along with a far improved service portfolio, supporting ZIM’s strategy going forward.”