Zim revises deal with 2M alliance to cut charter hire costs by buying more slots

Release time：2018-09-18

ISRAELI shipping line Zim's cooperation with 2M partners, Maersk Line and MSC, on the Asia-US east coast route will see six loops consolidated into five, starting from September 12 as the carrier turns its focus to reducing cost and raising average revenue per slot.

Under the four-year agreement with the 2M alliance, Zim will remove one of its strings and buy 3,000 slots weekly from Maersk and MSC, reported UK's The Loadstar.

This means that once time charters expire, Zim will be able to return six panamax ships to the owners, saving US$22 million per annum in charter hire plus cut related fuel and port costs.

Zim CEO Eli Glickman said: "This agreement is expected to bring considerable efficiencies and savings, along with a far improved service portfolio, supporting Zim's strategy going forward."

The shipping line ranked tenth worldwide charters 90 per cent of its 84-ship, 414,500 TEU-capacity fleet, which is by far the highest ratio among its peers. Consequently, the carrier has suffered more than its competitors this year from the rebound in charter rates.

Zim suffered a net loss of $67 million in the first half of the year on the back of lower freight rates, higher bunker prices and the increase in charter hire rates.

The shipping line also announced it is upgrading its own India Med Express Line (IMX) service that calls at ports in Sri Lanka, India and the east Mediterranean by "significantly' reducing headhaul transit times at some ports "by a week to 10 days," starting in September.