ISRAELI ocean carrier Zim reported a third-quarter loss of US$2.27 billion compared with a net income of US$1.166 billion in the third quarter of 2022.

The company’s revenues for the third quarter of 2023 were US$1.273 million, a year-on-year decrease of 61%.

As Zim’s income and profit plummeted, it saw a slight year-on-year increase in volumes carried to 867,000 TEU for the third quarter of this year.

Its average freight rate over the period was US$1139 per TEU, a year-on-year decrease of 66%.

The company revised its 2023 full year guidance to an adjusted EBITDA of US$900 million – US$1.1 billion and an adjusted EBIT loss of US$600 million – US$400 million.

Zim president and CEO Eli Glickman said the third-quarter results reflected the current operating environment as demand remains week and freight rates continue to deteriorate.

“Given our negative outlook for freight rates in the near future, we recorded a non-cash impairment loss of approximately US$2.1 billion which negatively impacted our net results, as well as revised our full year guidance,” he said.

 “We are currently in a transition period, which we expect will extend into 2024, during which we should gradually see the benefits of the decisive actions we have taken to enhance Zim’s commercial and operational resilience.”

Mr Glickman said the company had embarked on a fleet renewal program, which included 46 newbuild containerships of which 28 are “green” LNG vessels, and

“That – along with the redelivery of older, more expensive and less efficient vessels – we expect will improve our cost structure and drive long-term profitable growth. Our cost per TEU is declining and we expect to further reduce our cost base, as our chartered newbuilds, including a total of 28 dual-fuel LNG containerships, are added to our fleet through 2023-2024.”

Mr Glickman said: “We believe our ample total liquidity of approximately US$3.1 billion at quarter-end will enable Zim to maintain a long-term view while we weather prolonged market weakness.

“Specifically, we have initiated significant cost control measures, rationalised our capacity and adapted our network, with a focus on both maximising our cash position and delivering an exceptional customer experience. Additionally, we entered into an important new collaboration with MSC during the third quarter that enhances operational efficiencies and further elevates service levels.”