The Israel-based container carrier ZIM Intergrated Shipping Services Ltd. reported net profit of $5 million in the third quarter of 2019 compared to a loss of $6.6 million in the same period last year. Revenue was also higher: $842 million in the third quarter this year compared to $840.7 million in the same 2018 period.
Eli Glickman, the president and chief executive officer of ZIM, said, "While the challenges in the market endure, the advantages gained by our global strategic cooperation and our customer focus enable us to pursue our goals and strengthen our position."
In September 2018, ZIM began sharing space with Maersk and MSC on several services between Asia and the U.S. East-Coast. During the first nine months of 2019, the cooperation was expanded on three additional trade lanes between Asia and the East Mediterranean, Asia and the Pacific Northwest, and Asia and the U.S. Gulf.
Glickman said the agreements enable ZIM to "provide ever better services and a wider portfolio to customers, while achieving cost efficiencies and maintaining the levels of cargo carried. Our ongoing efforts in the spheres of customer experience and digitalization also bear fruits as we continue to focus on our customers' needs and push for commercial excellence in all fields."
While ZIM carried approximately 725,000 TEU of containerized cargo in the third quarter of 2019, 5,000 fewer than in the same period last year, the average freight rate rose slightly by $3 per TEU to $1,009 per TEU.
Kenon Holdings Ltd. (NYSE: KEN) owns 32% of ZIM, while other financial institutions and shipowners own the other 68%.
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