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    Alexia Dogani • JPMorgan Chase & Co.

    Alexia Dogani's questions to ZIM Integrated Shipping Services Ltd (ZIM) leadership

    Alexia Dogani's questions to ZIM Integrated Shipping Services Ltd (ZIM) leadership • Q1 2025

    Question

    Alexia Dogani asked about near-term network development, including the redeployment of capacity and the speed of reintroducing services. She also requested a breakdown of the fleet's charter duration profile and inquired about opportunities for structural cost savings compared to pre-pandemic levels.

    Answer

    CFO Xavier Destriau highlighted ZIM's agility, noting the company suspended its ZX2 service due to tariff impacts but is resuming it immediately following the 90-day tariff pause. He detailed that two-thirds of the fleet is on long-term charters (>5 years) or owned, providing cost stability, while one-third is on short-term charters, offering flexibility with 81,000 TEUs up for renewal in 2025. For costs, he said the focus is on avoiding expenses, such as optimizing empty container repositioning, as major savings were already achieved through the fleet transformation.

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    Alexia Dogani's questions to ZIM Integrated Shipping Services Ltd (ZIM) leadership • Q4 2024

    Question

    Alexia Dogani asked for commentary on the recent drop in spot rates, the evolution of ZIM's fleet strategy from short-term agility to long-term charters, and the capital allocation rationale for paying a high-yield dividend instead of purchasing more vessels to reduce charter costs.

    Answer

    CFO Xavier Destriau attributed recent rate uncertainty to post-Chinese New Year seasonality and tariff concerns but noted that initial contract negotiations are encouraging. He explained the shift in fleet strategy was a necessary response to post-COVID market changes to secure core capacity and gain cost visibility. Regarding capital allocation, he stated that long-term chartering of new LNG vessels avoids taking on the residual value risk of a specific green technology, providing long-term flexibility.

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