News Highlights week: 29 - 2023

In its preliminary operational update before reporting full financial earnings, the line unveiled quarterly revenues of USD 1.98 bn for the period, down from USD 5.28 bn a year earlier. Liftings were higher at 1.86 Mteu (versus 1.84 Mteu in 2022) but average rates per teu plummeted to USD 1,063, down from USD 2,874 a year ago. Not sur- prisingly, the greatest revenue losses year-on-year were felt on the Transpacific and Asia-Europe routes.
It was a slightly different picture on a quarter-on-quarter basis, how- ever. The carrier enjoyed something of a surge in volumes, with liftings rising 7% compared to the first three months of 2023. However, average rates fell 15% on the same basis.

Revenues on the Transpacific were unchanged in the second quarter versus the first, as higher volumes offset lower rates - see table left. However, Transatlantic revenues fell 25% quarter-on-quarter, and Oceania and Asia/Europe were down 10% and 9% respectively.
Parent company COSCO last week announced higher operating prof its for Q2 than Q1 in its preliminary indications. Both carriers will an- nounce detailed financial results next month.
ZIM reverses profit guidance, predicts loss for 2023
Israeli carrier ZIM downgraded profit forecasts for 2023 and said it now expected to make a loss for the year following signs of ‘muted’ demand over the rest of the year. 
ZIM, currently the 10th ranked carrier, said annual operating losses were expected to come in at between –USD 100 M and –USD 500 M for the year. 
This contrasts with the company’s earlier guidance in March of a small profit between USD 100-500 M. EBITDA meanwhile is expected to drop to USD 1,200-1,600 M from earlier predictions of USD 1,800-2,200 M. ZIM said it no longer anticipated an improvement in freight rates in the second half of 2023. 

Average rates per teu fell to USD 1,390 for ZIM in the first three months of the year, a 64% drop on a year earlier, while liftings limped in at 769,000 teu, the lowest since Q3 2020. 
ZIM and Wan Hai Lines became the first carriers to report operating losses in the first quarter of 2023, with ZIM booking a net loss of – USD 58 M and an operating loss of –USD 14 M.