ZIM Integrated Shipping Services Lowers FY23 Guidance - Quick Facts

(RTTNews) - ZIM Integrated Shipping Services Ltd. (ZIM) updated its guidance for the full year of 2023. The company now expects adjusted EBITDA of $1.2 billion to $1.6 billion and adjusted EBIT loss of $500 million to $100 million. The prior guidance was adjusted EBITDA between $1.8 billion and $2.2 billion and adjusted positive EBIT of between $100 to $500 million.

The company said the updated guidance was driven primarily by continued weakness in freight rates across all the trades, particularly in the Transpacific, which is now expected to continue during the second half of 2023. Volume growth is also projected to be lower than originally forecasted, as demand continues to be subdued, the company noted.

Eli Glickman, 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."

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