ZIM POSTS $15-MILLION LOSS FOR FIRST HALF
The container shipping line Zim Israel Navigation Co. has posted a loss of $14.6 million for the first half of the year, as compared with earnings of $12.1 in the corresponding period of 2001.
Revenues decreased by 11 percent over the same period, to $759 million, from $851 million, despite a 7.5-percent increase in cargo volume.
“The decrease in revenues is the result of the sharp decline of 14.2 percent in average shipping prices in comparison with the corresponding period last year,” a spokesman for Zim’s parent company said.
The company said that the decline in freight rates “is attributed to the slowdown in the global economy and mainly in the U.S., which began at the end of 2000 and has continued into 2002.” The slowdown in demand for shipping services was accompanied by a massive addition of new containerships, resulting in overcapacity, the company said.