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
- ZIM reported a drop in containers shipped (about 7% for comparable Qtr; 1.4% for the H1 2022)
- Volume drop shows up in Pacific and Atlantic routes
- Freight rates (the amount ZIM charges its customers) inched down over Q1
The good
- Freight rates are still much higher (at least 54% higher on a comparable qtr basis)
- Volumes are still higher on Intra Asia, Latin America, etc
- ZIM bumped up its dividend payout to 30% of net income in Q2, and will pay at least 30% of net income going forward.
- 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
https://investors.zim.com/events-and-presentations/events/de……
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.
YMMV,
HohumYNWA