Zim’s Q3 profit nears $100 million

ZimÆs Q3 profit nears $100 million    Israel-based container line Zim said last week it secured third quarter operating profit of $96 million, compared to a $153 million operating loss in the same period in 2009.
   The line's revenue increased 77 percent to $1.1 billion in the period, a rise Zim attributed to 'a growth in quantities of cargo carried, higher freight rates, and income from other services.'
   Zim's average freight rate per container increased in the third quarter by 46 percent, from $1,027 per container in 2009 to $1,496 per container this year. Container volume in the period increased from 455,000 TEUs in 2009 to 596,000 TEUs this year.
   Year to date, Zim's volume has risen 27 percent, to nearly 1.7 million TEUs.
   'The improvement in the global trade conditions is an important factor contributing to Zim's strong results in the third quarter,' said Nir Gilad, Zim chairman and chief executive of the line's parent company, Israel Corp. 'The efficiency measures taken by the company are also beginning to bear fruit, and their contribution to the company's positive results are very significant. The improvement in market conditions is very encouraging, however it should be remembered that the market has not yet reached full stability and that certain volatility in the shipping industry is possible.'
   As for costs, Zim said it's cargo handling costs increased 23 percent in the third quarter, while fuel costs rose 50 percent, though ship charter costs decreased by 14 percent.
   In July, Zim took delivery of two vessels — one 8,200 TEU and another 10,000 TEU — completing an order of eight vessels of 8,000 TEUs or larger (the line's first such ships).
   Zim also recently netted $120 million through the sale of its stake in a container terminal in Lagos, Nigeria (though that sale occurred in the fourth quarter).
   ComPair Data's Francis Phillips wrote about Zim's global network in a recent piece for the ComPair Data Service Tracker.