ZIM reports Q1 loss as freight rates and volumes decline

ZIM Integrated Shipping Services reported lower revenues and a net loss for the first quarter of 2026 as weaker freight rates and softer demand continued to pressure the container shipping market.

The company recorded revenues of US$1.40 billion during the quarter, down 30% year-on-year. Net loss reached US$86 million compared to net income of US$296 million in the first quarter of 2025.

Adjusted EBITDA declined 60% to US$313 million, while adjusted EBIT posted a loss of US$5 million.

ZIM carried 866,000 TEUs during the quarter, an 8% decrease from the same period last year. Average freight rate per TEU fell 26% to US$1,310.

“Our first quarter results were broadly in line with our expectations, reflecting a softer freight rate environment, coupled with weaker demand,” said Eli Glickman, President and CEO of ZIM.

The company also highlighted rising bunkering costs linked to tensions in the Persian Gulf. ZIM said the impact on first-quarter results remained limited but expects stronger pressure during the second quarter before freight rate increases and bunker surcharges take effect.

ZIM noted that its growing LNG-powered fleet could provide a competitive advantage. Around 40% of its fleet capacity now operates on LNG fuel under long-term supply agreements with Shell.

The carrier also pointed to stronger recent demand trends on the Transpacific trade lane, where freight rates have started improving.

The company maintained approximately 65% exposure to spot rates on Transpacific volumes following annual contract negotiations that became effective on 1 May.

ZIM currently operates 114 containerships with total capacity of 699,000 TEUs and 13 car carriers.

The company also confirmed that its proposed acquisition by Hapag-Lloyd remains on track. The US$35 per share cash transaction is expected to close during the fourth quarter of 2026, pending regulatory approvals.

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