Zim posted a quarterly operating profit of $80 million, reporting the best results since the third quarter of 2010. Success was attributed to cost cutting, and a 10 per cent increase in rates to $1,444 per TEU, which amounted to a quarterly throughput of 617,000 TEU, which declined 4.5 per cent year on year.
Global economic uncertainty and overcapacity in the shipping industry could lead to worsening market conditions next year, said the company, according to Reuters, adding that increased capacity and rising oil prices have put pressure on freight rates.
Zim CEO Rafi Danieli said that while there has been some pick-up in demand, it was not enough to cover oversupply.
"Today about 4.5 to five per cent of the world`s fleet is idle," he told Reuters. "In the last two years we put a lot of effort into being more efficient. We made organisational changes and results are now above the industry average. We are more focused on profitability and not on market share."
Zim`s liquidity improved in the quarter due to strong cash flow and refinancing transactions.
While trade has slowed on major Asia-Europe routes due to weak European demand, Mr Danieli said 40 per cent of Zim`s routes are based in the Pacific, with only 20 per cent of routes in the Asia-Med/Europe trade.