ZIM Integrated Shipping Services ltd. has reported a US$12m profit for the second quarter, compared to a US$67m loss in the same period last year, before it had completed its restructuring.
The Company carried 577 thousands TEU in the second quarter of 2015, reflecting a 6% decrease compared to the same period last year. Most of the decrease was a result of service terminated from Asia to Northern Europe and withdrawing from trades which are not part of the Company’s business focus, as well as a decline in demand in the Asia-Mediterranean trade route.
As a result of lower container volumes and freight rates, total revenues in the second quarter of 2015 were US$763 million, compared to US$875 million in the same period last year. Average freight rate per TEU was US$1,150 in the second quarter of 2015, a 5% reduction compared to the same period last year.
Operationally the main development in the quarter was the implementation of ZIM's strategy of developing Asia-US routes with the opening of the ZIM Seven Star Express (Z7S). Z7S is fully operated by ZIM and provides one of the fastest services in the trade route between South China, Vietnam, Singapore and Sri Lanka to the U.S. East Coast and back. The loop will connects China, South East Asia and the Indian subcontinent via Suez, and is served on a weekly basis by ten TEU5,000 - TEU6,500 container vessels.