The Israeli ZIM shipping company reported a net profit of $1.34 billion in the second quarter of 2022, a 50% increase compared to the same period in 2021, it announced on Wednesday.
Total second-quarter revenues reached $3.43 billion, a 44% increase compared to the same period last year ($2.38 billion). The increase was primarily driven by elevated freight rates and offset by slightly lower freight volumes.
ZIM carried 856,000 TEUs (Twenty-foot Equivalent Units - a measurement equivalent to the dimensions of a 20-ft standardized shipping container) in the second quarter, a drop of over 7% compared to the same period last year (921,000 TEUs). The average freight rate per TEU was $3,596 for the second quarter, an increase of more than $1,250 compared to the same period in 2021 ($2,341).
The company carried 1.715 million TEUs in the first half of 2022, compared to 1.739 million in the first half of 2021.
Tax expenses also rose in 2022, costing the company $401 million in the second quarter compared to $224 m. in the second quarter of 2021.
ZIM reports best ever half-year results
"We reported today strong Q2 results, including net profit of $1.34 billion, as well as our best ever first half-year results with standout margins, among the highest of our liner peers. During this period, we maintained our strong execution, agility and commitment to profitable growth as we continue to advance ZIM's position as an innovative digital leader of seaborne transportation," said ZIM president and CEO Eli Glickman.
"We maintained our strong execution, agility and commitment to profitable growth as we continue to advance ZIM's position as an innovative digital leader of seaborne transportation."
ZIM president and CEO Eli Glickman
"Over the past several weeks, we have seen a gradual decline in freight rates, including in the transpacific trades, despite continued port congestion and resilient demand, driven by macroeconomic and geopolitical uncertainties," he said.
"The dynamic nature of our industry illustrates the importance of staying focused on ZIM's core strategy and key strengths. Our global niche approach is centered on successfully identifying attractive growth opportunities and adjusting our fleet size depending on changing market conditions. We believe that this approach will continue to serve us well as the market is expected to normalize from peak levels," Glickman said.
"Despite the backdrop of various challenges, based on our strong performance in the year to date coupled with spot and contract rates that remain highly profitable, we are reaffirming our 2022 guidance, which would mark another year of record earnings and profitability," the shipping CEO said.
"Moving forward, we are confident that our differentiated strategy, the proactive steps we have taken to strengthen our commercial offering and secure cost-efficient newbuild capacity through multiple chartering agreements, and continued investment in digital initiatives and disruptive technologies, will position ZIM as a top performer in our industry and enable us to deliver long-term value to our shareholders."