German insurance giant also informed it will no longer underwrite deals with several shipping companies. The move point to a higher perceived risk level for Zim
 
Euler Hermes, a global leader in credit management and insurance, decided last month to cut credit insurance to the shipping industry in general, with Zim Integrated Shipping Services being one of the first, but not the only.
 
According to media reports the British news portal "Lloyd's List" reported that German insurance giant Euler Hermes informed several fuel suppliers, Shell BP and Chevron-Texaco last month that it will no longer underwrite deals with several shipping companies.
 
Credit insurance is not a requirement for fuel supply contracts in the shipping industry, but the move does point to a higher perceived risk level for Zim, which is expected to increase the pressure on the firm.
 
Zim Integrated Shipping Services Ltd. replied to the reports saying that "To the company's best knowledge, in light of the economic conditions in the shipping sector, Euler Hermes is reconsidering the whole shipping industry. It should be emphasized that additionally, not one of Zim's suppliers has reduced the credit to the company”.