As a result of lower container volumes and freight rates, ZIM reported total revenues in the second quarter of 2015 of $763 million, compared to $875 million in the same period last year. Net profit, on a GAAP basis, was $12 million, compared to a loss of $67 million for the second quarter of 2014. Operating cash flow was $86 million, compared to $19 million for the second quarter of 2014.
The Company carried 577,000 TEUs in the second quarter of 2015, reflecting a 6 per cent decrease compared to the same period last year. Most of the decrease was a result of service terminations from Asia to Northern Europe, and the withdrawal from trades which are not part of the Company’s business focus, as well as a decline in demand on the Asia-Mediterranean trade route. Average freight rate per TEU was $1,150 in the second quarter of 2015, a 5 per cent reduction compared to the same period last year.
During the second quarter of 2015, ZIM launched ZIM Seven Star Express (Z7S), a new line connecting South China, South East Asia and the Indian sub-continent and the U.S. East Coast via the Suez Canal. Inauguration of this service is part of the company’s strategy to develop the Asia-U.S. trade route. Z7S is operated by ZIM and provides one of the fastest services in the trade route between South China, Vietnam, Singapore and Sri Lanka to the U.S. East Coast and back. ZIM deploys ten 5,000-6,500 TEU vessels for the trade on a weekly schedule.
ZIM was ranked first in schedule reliability and punctuality on the Asia-U.S. East Coast trade route in May and June 2015, according to a July 2015 SeaIntel report.