ZIM reported 2013 revenues of $3.7 billion (compared to $4 billion in 2012), a decrease of 7 per cent resulting mostly from declining freight rates. Average freight rates in 2013 decreased by about 9 per cent (from $1342 per container in 2012 to $1227 in 2012).
2013’s operating loss amounted to $191 million, compared to an operating loss of $206 million in the previous year, an improvement of $15 million. Excluding extraordinary expenses, the annual operational loss amounted to $130 million. The improvement was largely achieved through the implementation of technological innovations which resulted in reduced fuel consumption and fuel procurement at optimal prices, all as part of the comprehensive transformation and efficiency process the company has been conducting over the last three years. These steps significantly compensated for the sharp reduction in freight rates.
The net loss in 2013 amounted to $530 million compared with $428 million last year. Excluding extraordinary expenses, the annual loss amounted to $369 million. In 2013 operating cash flow amounted to $13 million, compared with $94 million in 2012.
In 2013 the company carried 2.5 million TEUs , compared with 2.4 million in the previous year, a 5 per cent increase.
The company, which has been in the midst of a financial restructuring process since early 2013, succeeded in maintaining results which are at par with the industry average, and to avoid any negative impact on service to customers.
In January 2014 the company signed a term sheet with a majority of its debtors, and continues to make progress towards the completion of new financial arrangements. The new financial arrangement will significantly reduce the company’s debt to a level of $1-1.5 billion and improve its expense structure, and will enable the company to face the many challenges of the shipping market.
The company is in advanced stages of negotiations with the Israeli Government regarding the cancellation of the State’s “golden share”, while maintaining the State’s interests in a manner that is acceptable to the Ministry of Defense. The change will facilitate completion of the financial arrangement, enable cooperation with other carriers and facilitate raising capital.