Zim narrows Q3 loss 20pc to US$63 million from $79 million lost in Q2

Time:2011-11-28 Browse:47 Author:RISINGSUN

ISRAEL`s Zim Integrated Shipping has narrowed its loss in the third quarter by 20 per cent to US$63 million from the $79 million loss it made in the second quarter.

There were significant improvement in operations, said the company. Although third quarter revenue was $973 million, less than the $1 billion raised in the previous quarter, the Zim improved its cash flow from a negative level of $7 million in second quarter to a positive level of $23 million in the third quarter, noted the UK`s Transport Intelligence.


Zim shipped 646,000 TEU in the third quarter, compared to 596,000 TEU in the previous quarter, up eight per cent month on month and year on year.


It was able to maintain a stable price at an average $1,311 per TEU between the second and third quarters. But the carrier said prices will continue to be soft in the last quarter as overcapacity has deteriorated the supply-demand imbalance.


Another reason for operating losses is the high bunker prices, which also contributed to the company`s continued losses. The average market price of bunker was $650 a ton in the third quarter, compared to an average of $463 a ton in the same period of 2010. Zim expects fuel prices will stay high in the fourth quarter.


Looking ahead, the carrier said it has secured new funds of $100 million from the Israel Corp and Ofer Group to carry out long-term business plan.