Israeli ZIM’s profits plunge 94% due to Red Sea bypass

QUDS, Aug. 20 (YPA) – The Israeli shipping company, ZIM, recorded a sharp decline in profits during the second quarter of this year, due to the need to change its routes away from the Red Sea and the rise in global shipping costs.

Hebrew Calcalist newspaper reported that Zim Integrated Shipping Services Ltd ended the second quarter with net profits of just $24 million, a decrease of almost 94% compared to the same period last year.

This comes against the backdrop of a decline in the volume of goods transported due to the Yemeni blockade of the port of Umm al-Rashrāsh, known as Eilat.

The newspaper noted that the company was facing increasing pressure due to the continued disruption of its direct shipping lines across the Red Sea, which increases fuel costs, extends voyage times, and directly impacts its competitiveness in the global shipping market.

AA