ZIM Workers' Committee Raises Alarm Over Hapag-Lloyd's Interest in Acquisition

Tensions over the future of shipping company ZIM are escalating. Based on market estimates and information received by ZIM's Workers' Committee, Hapag-Lloyd is interested in acquiring the controlling stake of the company.

Against this backdrop, ZIM's Workers' Committee sent a letter to the Minister of Transportation and Road Safety, Miri Regev, demanding immediate action to prevent the company's acquisition by German Hapag-Lloyd - an acquisition that, according to the committee, could endanger Israel's security and the continuity of the national supply chain.

In the letter sent to the minister, the workers note that Hapag-Lloyd has significant holdings of investment funds from Qatar (about 12.3%) and Saudi Arabia (about 10.2%) and warn that such a move would indirectly give control over Israel's maritime lifeline.

The committee reminds that 98% of Israel's trade by weight is based on maritime transport, and that "ZIM is the only shipping company that served Israel during Operation Protective Edge, bringing food, medicine, ammunition, and critical military equipment. Once it falls under hostile foreign control - this ability will be completely lost. The implication: In the next war, Israel will be maritime-blocked."

The committee also points out that the State of Israel has a golden share in ZIM, which grants veto rights to any significant change in the control structure and thus ensures that the company remains under Israeli control. According to them, any damage to the stability of ownership will endanger not only the security logistics systems but also the livelihoods of about 1,000 direct employees and thousands more indirectly.

"The hour is an emergency hour," the appeal reads. "In times of war, ZIM saved Israel. Now you have the power to save ZIM." The committee calls for an urgent meeting this week and to bring the issue to the discussions of the political-security cabinet.

The appeal comes against the backdrop of uncertainty created in the industry after it was reported that various elements, including ZIM CEO Eli Glickman, are examining options for acquiring control of the company. ZIM's board announced last week that it is considering various strategic alternatives, including receiving approaches from various market players.

In the meantime, the Workers' Committee is trying to calm the workers and strengthen the message: "ZIM is a strategic asset and we will protect the workers and the national interest in any scenario."

It should be noted that the shipping company Hapag-Lloyd AG, considered one of the largest shipping companies in the world, is a public company whose headquarters are located in Hamburg, Germany. The main shareholders of the company are the Klaus-Michael Kuehne holding fund (30%), the city of Hamburg (30%), and international shareholders including the Qatar Investment Fund Qatar Holding with about 12.3% and the Saudi Investment Fund PIF with about 10.2%.

ZIM did not respond to a request for comment.