Revenue slumped 50% to US$596 million from US$1.18 billion a year earlier on lower container volume and weaker freight rates
Zim Integrated Shipping Services reported last Thursday a third-quarter loss of US$208 million, more than triples from 2008's 3rd quarter (US$61 million).
Revenue slumped 50% to US$596 million from US$1.18 billion a year earlier on lower container volume and weaker freight rates. The drop in revenue flowed mainly from a drop in quantity shipped, a drop in shipping charges, and lower subsidiary revenue.
The loss, following a US$186 million deficit in the previous three months, took losses for the first nine months of the year to US$513 million compared to US$132 million in the parallel. The loss helped push parent Israel Corp. into an $11 million third-quarter net loss from a year-earlier profit of $253 million.
Zim's revenue for the first nine months of the year was US$1.76 billion compared to US$3.4 billion in the parallel.
In a statement issued by Zim's parent company it noted that the drop in revenue is attributed from drop in quantities shipped as well as drop in average freight rates. During the period, the average freight rate per container went down by 20% from US$1,434 to US$1,145. During first nine months of the year Zim transported TEU1.3 compared to TEU1.936 in the parallel, a drop of 33%.
During the third quarter revenue totaled US$596million, compared to US$1.187 in the parallel. During the period, the average freight rate per container went down by 31% from US$1,493 to US$1,027. During the third quarter Zim transported TEU455,000 comparedto TEU660,000 in the parallel, a drop of 31%.
