ZIM Integrated Shipping (ZIM) has raised its guidance for 2024, citing an improved rate environment as the Israeli shipping company bounced back in the green during the first quarter of the year.

The shipping line reported a net income of US$92 million during the first quarter, reversing a net loss of US$58 million recorded during the same period in 2023.

For the first quarter, ZIM said adjusted EBITDA was US$427 million, a 14% increase over the previous year, while revenues were US$1.56 billion, also a 14% increase year-on-year.

ZIM carried 846,000 TEUs in the January to March period, increasing 10% year-on-year.

"We are pleased with the current positive momentum in our business. ZIM's solid first-quarter results illustrate the incremental benefits from our strategic transformation and the outstanding execution of the ZIM team worldwide, as well as a significant improvement in global freight rates," said 
Eli Glickman, president and CEO of ZIM.

He noted that ZIM had taken important steps to revamp its fleet and enhance its cost structure, which "exceeded our expectations." Glickman said the ocean carrier delivered profitable growth in Q1 2024.

"Given the recently improved freight rate environment currently impacting more trades, we have increased our full-year 2024 guidance and today forecast full-year Adjusted EBITDA between US$1.15 billion and US$1.55 billion and Adjusted EBIT between zero and US$400 million", the ZIM chief executive added.

"Looking ahead, we now expect freight rates to remain stronger for longer than initially anticipated due to a combination of continued pressure on supply and availability of equipment and a recent uptick in demand," Glickman said.

"While the rate environment during the latter part of 2024 remains unknown, we are confident in ZIM's strategic positioning as an agile container shipping player with a competitive cost- and fuel-efficient, modern fleet," he added.

By the end of 2024, ZIM expects the delivery of the final 16 of 46 newbuild containerships that we secured, including 28 LNG-powered vessels.

"With a fleet optimally suited to the trades in which we operate, together with declining unit costs, we are well positioned to achieve our volume growth targets and deliver on our commitment to profitability over the long term," the ZIM chief added.