Welcome Aboard ZIM Investors – A Letter to Shareholders

Read More

Overview

Launched in Israel in 1945, ZIM became a pioneer in container shipping in the early 1970’s, and has established itself as a leading global, asset light container liner shipping company. We provide customers with innovative seaborne transportation and logistics services, covering the world’s major trade routes and focusing on select markets where we have competitive advantages and are able to maximize our market position.

ZIM’s unique strategy as a digital-oriented, asset-light, global niche carrier offers distinctive advantages, allowing the company to provide innovative and premium customer-centric services while maximizing profitability.

Through this focused strategy, enhanced digital tools, and a reputation as a top industry performer with high schedule reliability and service quality, ZIM is positioned to continue to expand its leadership and achieve best-in-class margins.

In a dynamic shipping and logistics environment, ZIM has set itself apart as a carrier with a fresh, unique approach. Supporting our central mission of providing the highest levels of customer service, we have implemented an innovative, data-driven strategy promoting digitization and introducing creative solutions to the market aimed at meeting customers' evolving needs.

As part of our “Innovative Shipping” vision, we rely on careful analysis of data, including business and artificial intelligence, to better understand the needs of our customers and digitize our products, without compromising our long-standing reputation for a distinct personal approach to customer relations. We operate and innovate as a truly customer-centric company, constantly striving to provide a best-in-class product offering.

ZIM operates a fleet of close to 100 vessels, nearly all chartered-in. This asset-light model, which differentiates us relative to our competition, enables us to benefit from a flexible cost structure and operational efficiency. This, in turn, increases profitability and allows us to better serve our customers.

With operations in select trades across five geographic trade zones, ZIM is a significant market participant with a sizeable market share and global footprint. These trades include the Transpacific, Cross Atlantic, Cross Suez, Intra-Asia and Latin America. Within these trade zones, ZIM strives to increase and sustain profitability by selectively competing in niche trade lanes where the market is underserved and ZIM can maintain a competitive advantage versus its peers. In addition, ZIM enjoys an in-depth knowledge, long-established presence and outsized market position in these trade lanes. ZIM also embarks into new trade lanes opportunistically, often driven by demand from customers as they are not currently serviced in-full by our competitors. These include the US East Coast & Gulf to Mediterranean lane, East Mediterranean & Black Sea to East Asia Far East lane, and East Asia to US East Coast.

In response to the growing rise in eCommerce, ZIM recently launched new premium high-speed services: ZIM eCommerce Xpress (ZEX), which moves freight from China to Los Angeles, and ZIM China Australia Express (CAX), which moves freight from China to Australia. These solutions for time-sensitive cargo, which provide a compelling alternative to air freight, illustrate our agility and ability to quickly and efficiently execute in new niche lanes where we can offer a unique product and become the carrier of choice for our customers.

Importantly, ZIM's sizeable network is also significantly enhanced by cooperation agreements with other leading container liner companies and alliances, allowing us to maintain a high degree of agility while optimizing fleet utilization by sharing capacity, expanding our service offering and benefiting from cost savings.


Why ZIM?

In an industry dominated by traditional large players, ZIM stands out with its novel approach, bold strategy and innovative spirit focused on digitization, leading to record financial results in 2020.

ZIM’s differentiated position in the markets relies on the following pillars:

icon

Extensive and agile network

We focus on attractive global and niche markets where we can develop sustainable competitive advantages and drive long-term profitability. With a complex global network of approximately 70 weekly lines, we offer tailored value-added services, including several logistics subsidiaries which provide complementary services to our customers. In response to growing eCommerce demand, in 2020 we launched four new high-speed lines with extraordinary success.

icon

Innovation and digitalization

We use our technology and innovation to power new services, improve our best-in-class customer experience and enhance our productivity and portfolio management. Our investment in information technology systems has allowed us to develop an array of sophisticated tools that enable us to manage our vessel and cargo mix to prioritize higher yields and enhanced efficiency, cost savings, and profitability across the organization.

icon

Asset-light model

We charter-in nearly all of our capacity, mostly in short-term charter arrangements which allow us to adjust our capacity to meet changing market conditions, optimize vessel deployment, ensure high utilization of vessels, and exploit specific trade advantages. We also operate a modern, specialized container fleet, which acts as an additional value-added service offering, attracting higher yields than standard cargos.

icon

Enhanced geographic coverage through partnerships

Our network is significantly enhanced by cooperation agreements with other leading companies and alliances, allowing us to maintain a high degree of agility while optimizing fleet utilization by sharing capacity, expanding our service offering and benefiting from cost savings. In 2018, we entered into a strategic cooperation agreement with the 2M Alliance (includes Maersk and MSC), which provides for comprehensive vessel sharing and port coverage.

icon

Customer Centric approach

One of the key principles of our business is our customer-centric approach, characterized by the value-added services we offer to our highly diverse global customer base. Our strong reputation, high-quality service offering, and schedule reliability has generated a loyal customer base: 75% of our top 20 customers in 2019 have a working relationship with the Company lasting longer than 10 years.

icon

Focus on profitability

ZIM’s primary objective is to use our strengths to profitably grow our business and maximize value to our shareholders. Complementing our investment in digital tools to improve revenue management, profitability and best servicing our customers, the agility of our fleet enables ZIM to focus on trades that we believe are underserved and where we can introduce competitive and comprehensive product offerings. We consistently re-evaluate our focus on expanding our presence or entering new trades in order to drive profitable growth.

icon

Growth engines

In line with our organizational culture which promotes and nurtures innovation and creativity, we have developed multiple growth engines adjacent to our core container shipping business and formed partnerships and collaborations with third-party technological startups. Our cooperation with Alibaba, for example, is expected to enable us to gain a foothold in adjacent and new markets, grow our revenue streams and provide added value to our customers.

icon

Experienced management team with deep industry knowledge

ZIM has developed a strong company culture for performance, led by a management team with vast business and industry experience backed by the full support and guidance of a veteran Board of Directors. We believe that our team’s experience, deep industry knowledge and strong relationships with container liner industry participants, including freight forwarders, financing providers, customers, rail and truck transportation providers, vessel owners and shipbuilders, will continue to position us to execute our growth strategies.

These pillars, combined with our unique organizational culture, values and vision, create a robust infrastructure for sustained profitability even in the volatile business environment faced by all shipping companies and have enabled us to achieve performance at or near the peak of the industry over the last several years.

Latest News

View all news

Disclaimer: The information posted is as of the date indicated and, to our knowledge, was timely and accurate when posted. We are under no obligation to update or remove outdated information other than as required by applicable law or regulation