Zim returns to profit
Carrier reduces costs and benefits from a 25% increase in first-half volumes
Israeli shipping line Zim returned to profit in the second quarter of the year, thanks to reduced costs and volume increases.
Zim made a second quarter net profit of US$3 million, compared with a loss of $186 million in the corresponding period of 2009. Zim had previously said it did not expect to make a profit again until 2011.
Revenue increased by 72% year-on-year to reach $933 million and volumes hit 547,000 teu, resulting in a year-on-year volume increase during the first half of 25%.
Last year, Parent company Israel Corp rescued Zim with a $550 million cash injection.
The Israeli carrier lost $429 million in 2009, following on from a $339 million loss in 2008, and an $82 million loss in the first quarter of 2010.
In order to help increase profitability, the carrier cut its workforce by around 15%, introduced more efficient cargo handling procedures and a new IT system, which allowed staff a clearer idea of the costs associated with each container move.
Zim made a second quarter net profit of US$3 million, compared with a loss of $186 million in the corresponding period of 2009. Zim had previously said it did not expect to make a profit again until 2011.
Revenue increased by 72% year-on-year to reach $933 million and volumes hit 547,000 teu, resulting in a year-on-year volume increase during the first half of 25%.
Last year, Parent company Israel Corp rescued Zim with a $550 million cash injection.
The Israeli carrier lost $429 million in 2009, following on from a $339 million loss in 2008, and an $82 million loss in the first quarter of 2010.
In order to help increase profitability, the carrier cut its workforce by around 15%, introduced more efficient cargo handling procedures and a new IT system, which allowed staff a clearer idea of the costs associated with each container move.
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