Zim Integrated Shipping Services reported a net profit of $2.15 billion for 2024, significantly exceeding market forecasts and reflecting an 80% increase in revenue compared to the previous year.
The company’s annual revenue grew by 63.3% to $8.4 billion, with fourth-quarter earnings alone reaching $2.17 billion, Globes reported.
Zim’s strong financial performance was driven by rising freight rates and increased demand, with the average shipping cost per container climbing to $1,888, up from $1,203 in 2023.
The company transported 3.75 million containers in 2024, marking a 14% increase—well above the industry average of 4-5%.
Recent speculation suggested that Zim CEO Eli Glickman was considering a move to acquire control of the company, a report that led to a stock price surge.
However, in response to Globes, Glickman stated, “There is nothing concrete happening today, tomorrow, or the day after.”
Glickman expressed pride in the company’s results, emphasizing that Zim maintained its leadership among global shipping firms in terms of EBITDA (earnings before interest, taxes, depreciation, and amortization).
The company’s EBITDA soared by 252% to $3.7 billion, surpassing its forecasted range of $3.3-3.6 billion.
Impact of Houthi attacks and future challenges
Glickman acknowledged that the ongoing crisis in the Red Sea, particularly Houthi attacks on shipping lanes, had contributed to higher freight prices.
With many shipping companies avoiding the Bab al-Mandab Strait and the Suez Canal, supply chain disruptions have led to increased rates, benefiting Zim and the broader industry.
Looking ahead to 2025, Zim forecasts an adjusted EBITDA of $1.6-2.2 billion, assuming continued instability in shipping routes.
The company initially expected conditions to normalize by mid-2025, but Glickman noted that “as we approach the date, we see that recovery will take longer.”
Additionally, he highlighted potential risks to the global shipping industry, including proposed US tariffs on Chinese-built vessels, trade tensions, and the ongoing war in Ukraine.
Zim’s stock, traded on the New York Stock Exchange, has seen a 74% increase over the past year, bringing the company’s market valuation to $2.45 billion, according to Globes.
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