ZIM updates its outlook for 2023

ZIM Integrated Shipping Services Ltd., a global container liner shipping company, updated its guidance for the full year of 2023. The company now expects to generate Adjusted EBITDA of $1.2 billion to $1.6 billion and Adjusted EBIT loss of $500 million to $100 million, compared to its prior guidance of Adjusted EBITDA of between $1.8 billion and $2.2 billion and Adjusted positive EBIT of between $100 to $500 million.

ZIM's updated full-year 2023 guidance is driven primarily by continued weakness in freight rates across all the company's trades, particularly in the Transpacific, which is now expected to continue during the second half of 2023. Volume growth is also expected to be lower than originally forecasted, as demand continues to be subdued.

Eli Glickman, ZIM President & CEO, said "Near-term container shipping market conditions continue to be challenging, with demand expected to remain muted for the remainder of the year. While our second quarter results are broadly in-line with our expectations, we no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed."

Mr. Glickman continued, "During this downturn, we will continue to actively manage and rationalize our fleet and services, to maximize our cash position, while remaining true to our customer-centric approach, a hallmark of ZIM's success. We expect our strong balance sheet and ample cash to continue serving ZIM well and allow us to maintain a long-term view. As we look to the future, we believe that our cost-effective and fuel-efficient newbuild capacity, particularly our newbuild LNG vessels, will markedly improve our cost structure and competitive position, allowing us to deliver sustainable value for both customers and shareholders over the long term."