ZIM Integrated Shipping Lowers FY23 Outlook Citing Grim Demand, Weak Freight Rates

Container liner shipping company ZIM Integrated Shipping Services Ltd ZIM has lowered its FY23 adjusted EBITDA outlook from $1.8 billion - $2.2 billion to $1.2 billion to $1.6 billion.

It also slashed its FY23 adjusted EBIT guidance from $100 million - $500 million to a loss of $(500) million - $(100) million.

The updated guidance is driven primarily by continued weakness in freight rates across all the company's trades, particularly in the Transpacific.

ZIM expects the weakness to continue during the second half of 2023. It also expects volume growth to be lower than the original forecast, as demand continues to be subdued.

"Near-term container shipping market conditions continue to be challenging, with demand expected to remain muted for the remainder of the year,” said President and CEO Eli Glickman.

ZIM plans to report the second quarter 2023 results on August 16.

Price Action: ZIM shares are trading lower by 2.69% at $13.02 in premarket on the last check Wednesday.