Zim Integrated Shipping Services Ltd posted first quarter $29 million loss

Revenue was up due to 11.7% increase in average freight rate per TEU and 10.1% increase in quantity moved
 
Zim Integrated Shipping Services Ltd. an Israel Corporation subsidiary, showed first quarter loss for the second consecutive quarter. During the first quarter the company transported TEU 614,000 compared to TEU 558,000 during the same period last year. Although its revenue rose 31% to $1.04 billion, compared with the corresponding quarter to $795 million, it lost $29 million compared with a profit of $4 million for the corresponding quarter.
 
Revenue was up due to 11.7% increase in average freight rate per TEU and 10.1% increase in quantity moved.
 
The company's loss was due to the combination of soaring oil prices and the plummeting dollar.
 
Gilad noted, "It is difficult to raise prices for customers during an economic slowdown. We're undertaking operational streamlining to adjust to the situation, but there's no doubt that the current market situation does not favor the company." He added that most of the slowdown was felt from the US.