ZIM Integrated Shipping Services Ltd. said it carried less cargo than a year ago as weak demand sent it to a loss in the first quarter.
The Israeli liner (NYSE: ZIM), which is set to be acquired by Hapag-Lloyd of Germany, posted a net loss of $86 million compared to net income of $296 million in the first quarter of 2025. A diluted loss per share of $.71 marked a reversal compared to diluted earnings per share of $2.45 a year ago. Revenues slumped 30% to $1.4 billion y/y.
Most major carriers in the quarter saw profits tumble on increased shipments; Zim was an exception as carried volume in the first quarter was 866,000 twenty foot equivalent units (TEUs), off 8% y/y.
It’s worth noting difficult year-on-year comparisons industry-wide due to elevated frontloading in 2025 as shippers rushed to beat tariff increases.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) crashed 60% to $313 million. The operating loss of earnings before interest and taxes (EBIT) was $18 million, from income of $464 million the previous year. Adjusted EBIT loss for the first quarter was $5 million, compared to adjusted EBIT of $463 million in the first quarter of 2025.
Zim’s average freight rate per TEU was $1,310, down 26%.
“Our first quarter results were broadly in line with our expectations, reflecting a softer freight rate environment, coupled with weaker demand,” said Eli Glickman, Zim president and chief executive, in a statement.
Glickman said that while higher fuel costs from the Iran conflict in the Persian Gulf had minimal effect in the first quarter, the company expects a greater impact in the second quarter. The carrier has increased freight rates and applied bunker-specific surcharges to offset higher costs.
“Although market fundamentals remain challenging across ZIM’s main trade lanes, we have recently observed a positive change in the trend on the trans-Pacific trade with freight rates strengthening alongside demand,” said Glickman. “If this momentum continues, we expect it to support our financial performance, particularly in the second half of the year.”
As in 2025, Zim again is aligning its business plan with the spot market. Approximately 65% of its contracted trans-Pacific volume is exposed to spot rates.
“This approach underpins our nimble commercial strategy and allows us to stay agile and proactive in deploying capacity as demand patterns shift,” Glickman said.
Read more articles by Stuart Chirls here.
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