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Despite a marginal decline in volumes, Israeli container carrier Zim has reported significant improvement in financial results last year.
In 2019, it earned revenue of $3.3bn, compared with $3.25bn in 2018, a 1.6% increase, which came on the back of a 3.7% increase in the average freight rate to $1,009 per teu compared with $973 per teu in 2018.
Total volumes were 2.8m teu compared with 2.9m teu in 2018.
Its adjusted ebitda was $385.9m, compared with $150.7m in 2018, and on this it posted a net loss of $13m compared with a net loss of $119.9m in 2018.
Eli Glickman, Zim president and chief executive, said: “2019 has been a challenging year for the industry which had to cope with the escalation of the US-China trade war, while simultaneously getting itself ready for the IMO 2020 new regulation enforcement.
“Despite those difficult market conditions, we delivered a strong operational and financial performance with better ebit margin contribution than most of our peers. We also accelerated the deleveraging of our balance sheet,” he said.
Its 2019 operating cash flow was $370.6m, compared with $225m in 2018, as the carrier expanded its vessel sharing agreement with the 2M partners Maersk and MSC to three additional trades: Asia-East Mediterranean; Asia-American Pacific Northwest; and Asia-US Gulf.
“This clearly indicates that our strategy proves to be fruitful and effective and we intend to continue the path we initiated,” Mr Glickmann added.
“We continue to develop and implement lead innovative solutions, and we remain agile and ready to respond fast to new challenges. I’m convinced that these values will enable us to overcome the current coronavirus crisis, which we all hope will be contained soon.”