The cargo shipping company also lowered its 2022 outlook to reflect steeper decline in spot freight rates, softer demand and adjusted contract rates - factors already expected in the weaker container market.
ZIM (ZIM) expects 2022 adj. EBITDA of $7.4B-$7.7B and adj. EBIT of $6B-$6.3B. Its prior outlook was adj. EBITDA of $7.8B-$8.2B and adj. EBIT of $6.3B-$6.7B.
"We now expect our carried volume to be slightly lower than 2021. On the cost side, we assume a slightly more favorable charter rate environment, though the impact will be marginal given the limited number of charter renewals," said CFO Xavier Destriau in a post-earnings call.
"The combination of weaker demand, falling freight risk and risk of oversupply creates a challenging business environment for container shipping," Destriau cautioned.
"While this doesn't change the mid-term outlook, which we think is quite poor, we think these results may cause some relief today and expect a supportive share price," said analyst Samuel Bland.
Despite the shift in near-term outlook, Bland noted that ZIM (ZIM) believes port congestion, delivery slippage and IMO 2023 may help mid-term supply/demand.