Alexia Degani's questions to ZIM Integrated Shipping Services Ltd (ZIM) leadership • Q2 2025
Question
Alexia Degani from JPMorgan asked about any positive timing effects on Q3 from high June spot rates and the impact of increased vessel capacity on load factors for the second half. She also sought clarification on the number of TEUs up for charter renewal and questioned the company's breakeven unit cost level given the industry-wide rise in costs.
Answer
CFO Xavier Deslio confirmed that due to revenue recognition rules, the surge in spot rates from late Q2 will partially benefit Q3 results. He clarified that operated capacity in H2 will be comparable to last year, not substantially higher. He also distinguished between the 250,000 TEUs on short-term charter and the 140,000 TEUs with charters expiring in 2025-2026. Regarding costs, he detailed how fuel, newbuild prices, charter rates, cargo handling, and network adjustments have all contributed to a higher cost structure versus pre-COVID levels.