Zim has begun to turn around losses as it reaps the benefits of its partnership with the 2M Alliance.
The Israeli liner operator reported a net profit of $5.1m in the second quarter, compared with a $33.2m loss in the previous year.
Losses over the first six months were $19.2m, down from $67.3m in the same period last year.
“Zim’s results for the first six months of 2019 are encouraging,” said CEO Eli Glickman.
“We can now clearly see the benefits of our long-term strategy, specifically the operation cooperation with the 2M Alliance."
In September, Zim launched a strategic cooperation with 2M partners Maersk Line and Mediterranean Shipping Company (MSC) covering the trades between Asia and the US East Coast.
It expanded that this year to cover the trades from Asia to the East Mediterranean, Asia to the American Pacific Northwest, and from Asia to the US Gulf.
“We can now clearly see the benefits of our long-term strategy, specifically the operational cooperation with the 2M Alliance,” said Glickman.
Zim will double down on efforts to grow with partners and control costs, he said.
“This is all the more relevant in light of the uncertainties lying ahead for the industry, mainly the US related trade restrictions and the upcoming implementation of the IMO 2020 regulation,” Glickman said.
Revenue rose 3.9% to $834.3m in the second quarter, helped by a 9.5% jump in freight rates.
Volumes remained strong at 731,000 teu in the second quarter, just 5.3% down on Zim’s record of 772,000 teu set in the same period last year.
