Zim Integrated Shipping Services (ZIM) has raised its full-year guidance for 2024 as it anticipates "better-than-expected" second-half performance driven by continued supply pressure from the Red Sea crisis.

The Israeli shipping line made the announcement as it reported its results for the second quarter of the year, during which it recorded revenue of US$1.93 billion and a net income of US$373 million.

 [Source: ZIM]

The carrier also achieved an 11% volume growth with a record carried volume of 952,000 TEUs during the period.

"We are pleased with our strong second quarter performance, highlighted by outstanding strategic execution that led to record high carried volume, representing 11% growth year-over-year. The steps we have taken to upscale our capacity and enhance our cost structure have continued to drive strong financial results," said Eli Glickman, ZIM president & CEO.

Glickman added that during the quarter, ZIM benefitted from its "strategic decision" to increase the company's spot market exposure in the Transpacific trade – allowing it to capture significant upside in a rate environment that has been elevated for longer than anticipated.

ZIM raises 2024 guidance

"We expect our results in the second half of 2024 to be better than in the first half of the year, driven by continued supply pressure from the Red Sea crisis, combined with current favourable demand trends," he said.

"As a result, we have significantly increased our full-year 2024 guidance and today forecast full-year Adjusted EBITDA between US$2.6 billion and US$3.0 billion and Adjusted EBIT between US$1.45 billion and $1.85 billion," the ZIM chief executive further announced.

"While market fundamentals still signal supply growth significantly outpacing demand, we are confident that we have built a resilient business with a transformed fleet," he added.

Glickman said ZIM's ongoing newbuild program will be complete by year's end, as we receive delivery of the remaining eight out of 46 modern, fuel-efficient containerships that we secured, including 28 LNG-powered vessels.

"We are on track to achieve our double-digit volume growth target in 2024 and well positioned to drive profitable growth ahead," he added.