ZIM Q2 2022

X-post on METAR board

Container company Zim Integrated Shipping (ZIM) reported Q2 2022 results earlier today (8/17).
As mentioned in prior threads, ZIM is a Top 10 liner company and is in a working agreement with the
2M alliance (the two largest container shipping companies - MSC and Maersk)

Let me start with
The bad

  1. ZIM reported a drop in containers shipped (about 7% for comparable Qtr; 1.4% for the H1 2022)
  2. Volume drop shows up in Pacific and Atlantic routes
  3. Freight rates (the amount ZIM charges its customers) inched down over Q1

The good

  1. Freight rates are still much higher (at least 54% higher on a comparable qtr basis)
  2. Volumes are still higher on Intra Asia, Latin America, etc
  3. ZIM bumped up its dividend payout to 30% of net income in Q2, and will pay at least 30% of net income going forward.
  4. ZIM also made a catch-up contribution on Q1 payout so it too is at 30% of net income

There’s other useful data in their Q2 2022 slide deck e.g. Slide 15. As the only Top 10 container shipping company with a mostly leased fleet, the factors mentioned in Slide 15 may have a greater impact on ZIM than on its peers/competitors

ZIM is one of HohumYNWA’s large shipping stakes. In invested dollars/capital, it is my largest shipping investment. While the current stake is mostly red, I have realized wonderful gains earlier this year, plus had wonderful dividends paid during the first half of 2022. Another nibble today.