Zim posted a record operating profit of $5.55 billion for the first nine months of 2022, but the airline's chief executive said rates had accelerated since then as the market sought a new equilibrium.
The president and CEO of ZIM said that container freight rates have begun to normalize. He noted that the company's third-quarter and nine-month results reflected "excellent execution and rising profitability". The rate has since accelerated its decline as the market seeks a new equilibrium, it added. In the first nine months of 2022, the Haifa-based ocean-going airline achieved total revenue of $10.37 billion, EBIT of $5.5 billion, adjusted EBIT of $6.57 billion, and net profit of $4.21 billion. This was helped by high freight rates, up 30% year-on-year.
"We have seen a negative trend in the last six months, but in the last four weeks it has been faster," Glickman Eli said. "It's a mistake to talk about 2019 levels because you can't compare the cost side," he said. "Bunker fuel prices have risen significantly, with charter rates today 10 times higher than in 2019. This means that higher freight rates are required to cover the costs.
Zim cut its full-year guidance as the market slowdown deepened. The airline now expects earnings before interest, tax, depreciation and amortisation (EBITDA) of up to $7.7 billion in 2022, a sharp drop from its previous high-end forecast of $8.2 billion.
Mr Glickman said: "Based on our strong year-to-date performance despite various challenges, coupled with still-high spot and contract rates, we are reaffirming our 2022 guidance, which will mark another year of record earnings and profitability. Going forward, we are confident that our differentiation strategy, our proactive measures to strengthen commercial offerings and secure cost-effective newbuilding capabilities through multiple charter agreements, and continued investment in digital initiatives and disruptive technologies will position ZIM as the best performing company in our industry and enable us to deliver long-term value to our shareholders.
"In the current uncertain environment, demand is extremely difficult to predict, there is little visibility in the coming months, and we are waiting for the impact of Chinese New Year. That's a big question mark, "he said, adding that the traditional pick-up in bookings before December and January didn't materialize this year.