Container shipping line ZIM has reported a net loss of $163.5m for 2016, compared to a net profit of $6.5m in 2015. EBITDA was also lower at $49.4m, compared to $204.4m a year ago.
Total revenues in the year fell by 15.1% to $2,539m, on the back of the average freight rate per TEU declining to $902, reflecting a decrease of 19.9% compared to 2015. Offsetting this to some degree were higher volumes. ZIM reported that it transported 2.4m TEUs in 2016, an increase of 5.2% year-on-year.
As a result of increased efficiencies and cost reductions, along with other factors, unit cost decreased in 2016 by 14% compared to 2015. Overall though, every measure of profit was down year-on-year.
Rafi Danieli, ZIM’s President & CEO, said: “In spite of the very challenging market conditions in 2016, our results continued to improve, with a net profit in Q4 2016 and an increase in carried TEUs. The results were achieved through a successful efficiency plan and costs reductions implemented at all levels in ZIM. We continue to improve ZIM’s network and to react rapidly to changing market conditions. Starting April 2017, in response to the changes in the alliances’ setup, ZIM will introduce an upgraded, efficient new network, with new services in the Asia-America, Asia-Med and Med-America trades, offering high quality services to our customers. We operate as an independent, global niche carrier, with emphasis on high level customer service and focus on select markets where ZIM has a competitive advantage.”