Israel’s shipping company ZIM Integrated Shipping Services posted a net loss of USD 37.6 million in the third quarter of 2016, compared to a profit of USD 11.1 million seen in the same period last year, due to the continued deterioration in the container shipping market.
ZIM’s gross profit for the quarter amounted to USD 13.7 million, against USD 32 million recorded in the three-month period of 2015.
The average revenue per TEU went down 20.8 percent in the third quarter of 2016, decreasing to about USD 887 from USD 1,120 in the same period of 2015.
The company’s income for the three months ended September 30, 2016, was USD 643.9 million compared to USD 749 million seen in the same period last year, driven by a sharp reduction in freight rates.
During the quarter, ZIM carried 622,000 TEUs, compared to 581,000 TEUs in the same period of 2015, a 7.1% increase.
“While market conditions remain challenging, the company continued to improve its services. In line with its long-term strategy, the company invests in upgrading customer services, while maintaining efficiency and cost reductions,” ZIM said.
Earlier this year, the company reached an agreement with its creditors to reschedule payments of USD 115 million during a period of up to 12 months starting from September 30, 2016. With this move, ZIM said it intends to maintain the financial stability and continue developing its growth plan.