Israeli ocean carrier ZIM Integrated Shipping Services updated its guidance for the full year of 2023 and now expects to generate adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$1.2 – US$1.6 billion and adjusted EBIT loss of US$500 – US$100 million.
According to ZIM’s prior guidance, the company’s adjusted EBITDA was expected between US$1.8 billion and US$2.2 billion and adjusted EBIT was expected positive between US$100 to US$500 million.
ZIM said its updated full-year 2023 guidance is mainly impacted by continued weakness in freight rates across all the company’s trades, particularly in the Transpacific, which is now expected to continue during the second half of 2023.
Additionally, the Haifa-based container line believes that volume growth is expected to be lower than originally forecasted, as demand continues to be subdued.
Eli Glickman, ZIM president & CEO, commented, “Near-term container shipping market conditions continue to be challenging, with demand expected to remain muted for the remainder of the year. While our second quarter results are broadly in-line with our expectations, we no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed.”
He went on to add, “During this downturn, we will continue to actively manage and rationalise our fleet and services, to maximise our cash position, while remaining true to our customer-centric approach, a hallmark of ZIM’s success.”
Glickman concluded, “We expect our strong balance sheet and ample cash to continue serving ZIM well and allow us to maintain a long-term view. As we look to the future, we believe that our cost-effective and fuel-efficient newbuild capacity, particularly our newbuild LNG vessels, will markedly improve our cost structure and competitive position, allowing us to deliver sustainable value for both customers and shareholders over the long term.”
