ZIM made a net loss of US$163.5 million in 2016 even though it posted a net profit of US$4.6 million in the last quarter, according to annual results released by the company.

The shipping line made a net profit of US$6.5 million in 2015.

ZIM said that its results continued to improve in spite of the challenging market conditions.

“The results were achieved through a successful efficiency plan and cost reductions implemented at all levels in ZIM,” said Rafi Danieli, president and CEO. “We continue to improve ZIM’s network and to react rapidly to changing market conditions. Starting April 2017, in response to the changes in the alliances’ setup, ZIM will introduce an upgraded, efficient new network, with new services in the Asia-America, Asia-Med and Med-America trades, offering high-quality services to our customers. We operate as an independent, global niche carrier, with emphasis on high-level customer service and focus on select markets where ZIM has a competitive advantage.”

ZIM carried 2.4 million TEUs in 2016, a year-on-year increase of 5.2%, but revenue decreased by 15.1% because of lower freight rates, which fell 19.9% to US$902 per TEU, according to the Israeli shipping line.