Zim Integrated Shipping Services swung to a $322 million loss in 2008 from a year-earlier profit of $23 million on higher fuel bills.
Zim Integrated Shipping Services swung to a $322 million loss in 2008 from a year-earlier profit of $23 million on higher fuel bills, a write off for reduced ship values and reduced fourth quarter cargo volume. The Israeli ocean carrier's fourth quarter loss widened to $199 million from $10 million in the 2007 period partly caused by a $95 million provision for a decline in the value of property, plant and equipment.
Revenue rose 13.6 percent in 2008 to $4.3 billion and cargo volume grew 5.9 percent to 2.52 million TEUs from 2.38 million TEUs, offsetting a decline in fourth quarter traffic to 584,000 TEUs from 631,000 TEUs and a 12.4 percent drop in revenues to $925 million.
Parent company Israel Corp. said the difficult conditions in the container shipping market are continuing to have an adverse impact on Zim's operations, "its compliance with financial covenants and its ability to raise money, as well as its financing conditions."
Zim is in negotiations with shipyards to cancel or delay deliveries of containerships. It has laid up over 20 percent of its fleet and expects to idle more vessels through the year and will return ships as they come off charter.