ISRAELI shipping company ZIM Integrated Shipping Services has notified the US Securities and Exchange Commission of its intention for an initial public offering of its ordinary shares on the New York Stock Exchange. It comes during a period of elevated rates in the trans-Pacific container trade amid the global rebound from the COVID-19 shutdowns.
According to ZIM, nearly 40% of its operations by TEU capacity are in the trans-Pacific trade.
The company filed a registration statement with the SEC on 31 December 31, at which time it described itself as a “global, asset-light container liner shipping company with leadership positions in niche markets where we believe we have distinct competitive advantages that allow us to maximize our market position and profitability”.
ZIM differs from most ocean carriers that are generally global and provide ships on all major lines, in that it focuses on select trades where it believes it can establish a competitive advantage.
The company operates a global network of 66 weekly lines, calling at 310 ports in more than 80 countries. It also participates in a strategic collaboration with the 2M Alliance comprised of Maersk and MSC Mediterranean Shipping Company.
ZIM only owns one of its 70 vessels and leases 89% of its containers. Most carriers own close to half their fleet and containers, with moves by some majors to own even more. The company maintains that its leasing strategy allows it to maintain a sizable presence while limiting capital costs and maintaining flexibility.
If successful, ZIM’s IPO will be the first US initial public offering in the shipping sector since Gener8 Maritime’s IPO in 2015.
The amount of ordinary shares to be offered and price per share have not been determined.
