Latest news with #ZIMIntegratedShippingServicesLtd
Yahoo
29-05-2025
- Business
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Why ZIM Integrated Shipping Services Ltd. (ZIM) Went Down On Tuesday
We recently published a list of In this article, we are going to take a look at where ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands against other worst-performing stocks. ZIM Integrated dropped its share prices by 2.88 percent on Tuesday to finish at $17.53 apiece as investors sold off positions while digesting the company's cautious business outlook for the rest of the year. 'As we look toward the remainder of the year, the operating environment is highly uncertain, driven by a range of factors impacting global trade and economic expectations. For ZIM, our focus is on controlling what we can and responding to market shifts quickly with decisive actions,' said ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) President and CEO Eli Glickman. A fleet of vessels docking at a busy harbor, signaling the company's presence in global marine shipping. 'We continuously assess how to best allocate capacity and have taken steps to modify our network to match the changes in cargo flow from China and other Southeast Asian markets into the United States, including within the last week, which underscores the agile nature of our commercial strategy.' In recent news, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) said net income increased by 222 percent to $296 million from $92 million in the same period last year. Revenues grew by 28 percent to $2.01 billion from $1.56 billion year-on-year. Overall, ZIM ranks 9th on our list of worst-performing stocks. While we acknowledge the potential of ZIM, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZIM and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-05-2025
- Business
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Jim Cramer on ZIM Integrated Shipping Services (ZIM): 'I Don't Like That'
We recently published a list of . In this article, we are going to take a look at where ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands against other stocks that Jim Cramer discussed recently. On Tuesday, Jim Cramer, host of Mad Money, broke down the day's market movements as he pointed to rising bond yields as the main force behind a series of notable shifts in stock performance. 'Every day around here, we have a referendum on stocks, and you can't let it get you down because tomorrow's vote can always be different from today's… Why is it like this?… Well, the answer is a mischievous one.' READ ALSO Jim Cramer's Recent Thoughts on These 15 Stocks and Jim Cramer Put These 12 Stocks Under the Spotlight Cramer offered a broader perspective and explained that on most days, individual stocks respond either to the movements of other stocks or to the overall direction of the market. He said that the market, in turn, often takes its cues from the bond market, which he described as its 'much larger sibling.' On Tuesday, he noted that the bond market heavily influenced stock prices. He highlighted that every downward movement in bond prices, which translates to higher interest rates, was met with negative reactions from the stock market. According to Cramer, such a relationship meant that rising rates handed the advantage to the market bears and tipped the scales in their favor during daily trading. 'So here's the bottom line: The good news is that rates can also go up and not just down by the time we get a budget deal. The bad news is that rates are threatening to break out to the upside. And if they can't stay calm, if they jump to a new, higher level while Congress works on the budget bill, we're liable to have more days like today, where you need a plethora of positive themes for any given stock to break free from the gravitational pull of these darn miserable Treasurys.' For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 20. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A fleet of vessels docking at a busy harbor, signaling the company's presence in global marine shipping. Number of Hedge Fund Holders: 29 When a caller asked about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), Cramer said, 'ZIM Integrated, no, I don't like that and that dividend is a sucker's play. I don't want you in that stock.' ZIM Integrated Shipping (NYSE:ZIM) provides container transport and logistics solutions for a range of customers. Moreover, the company offers a tracking service for temperature-sensitive cargo. The company reported its financial results for the first quarter of 2025 on May 19. Net income for the quarter reached $296 million, a sharp increase from $92 million in the same period in 2024. Diluted EPS rose to $2.45, compared to $0.75 in the first quarter of the previous year. Lastly, ZIM Integrated Shipping (NYSE:ZIM) reported that the adjusted EBITDA came in at $779 million, which was an 82% increase year-over-year. Overall, ZIM ranks 8th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of ZIM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZIM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
21-05-2025
- Business
- Yahoo
Jim Cramer on ZIM Integrated Shipping Services (ZIM): 'I Don't Like That'
We recently published a list of . In this article, we are going to take a look at where ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands against other stocks that Jim Cramer discussed recently. On Tuesday, Jim Cramer, host of Mad Money, broke down the day's market movements as he pointed to rising bond yields as the main force behind a series of notable shifts in stock performance. 'Every day around here, we have a referendum on stocks, and you can't let it get you down because tomorrow's vote can always be different from today's… Why is it like this?… Well, the answer is a mischievous one.' READ ALSO Jim Cramer's Recent Thoughts on These 15 Stocks and Jim Cramer Put These 12 Stocks Under the Spotlight Cramer offered a broader perspective and explained that on most days, individual stocks respond either to the movements of other stocks or to the overall direction of the market. He said that the market, in turn, often takes its cues from the bond market, which he described as its 'much larger sibling.' On Tuesday, he noted that the bond market heavily influenced stock prices. He highlighted that every downward movement in bond prices, which translates to higher interest rates, was met with negative reactions from the stock market. According to Cramer, such a relationship meant that rising rates handed the advantage to the market bears and tipped the scales in their favor during daily trading. 'So here's the bottom line: The good news is that rates can also go up and not just down by the time we get a budget deal. The bad news is that rates are threatening to break out to the upside. And if they can't stay calm, if they jump to a new, higher level while Congress works on the budget bill, we're liable to have more days like today, where you need a plethora of positive themes for any given stock to break free from the gravitational pull of these darn miserable Treasurys.' For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 20. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A fleet of vessels docking at a busy harbor, signaling the company's presence in global marine shipping. Number of Hedge Fund Holders: 29 When a caller asked about ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), Cramer said, 'ZIM Integrated, no, I don't like that and that dividend is a sucker's play. I don't want you in that stock.' ZIM Integrated Shipping (NYSE:ZIM) provides container transport and logistics solutions for a range of customers. Moreover, the company offers a tracking service for temperature-sensitive cargo. The company reported its financial results for the first quarter of 2025 on May 19. Net income for the quarter reached $296 million, a sharp increase from $92 million in the same period in 2024. Diluted EPS rose to $2.45, compared to $0.75 in the first quarter of the previous year. Lastly, ZIM Integrated Shipping (NYSE:ZIM) reported that the adjusted EBITDA came in at $779 million, which was an 82% increase year-over-year. Overall, ZIM ranks 8th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of ZIM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZIM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
21-05-2025
- Business
- Yahoo
Why ZIM Integrated Shipping Services (ZIM) Surged Today
We recently published a list of . In this article, we are going to take a look at where ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands against other stocks that stole the show today. Ten mid-cap companies from diverse sectors stood out on Monday, outperforming the lackluster performance of major indices, thanks to a flurry of corporate developments that sparked investor appetite. While the firms boasted between 5 and 14 percent gains, the Dow Jones rose by only 0.32 percent, while the S&P 500 and the tech-heavy Nasdaq each inched up by 0.09 percent and 0.02 percent, respectively. In this article, we list the names of the top-performing stocks and detail the reasons behind their gains. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume. A fleet of vessels docking at a busy harbor, signaling the company's presence in global marine shipping. ZIM Integrated grew its share prices by 5.67 percent on Monday to end at $19.37 apiece following an impressive earnings performance in the past quarter of the year. In its earnings release, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) said that net income attributable to shareholders soared by 227 percent to $295.3 million from $90.3 million in the same period last year, as revenues increased by 28 percent to $2 billion from $1.56 billion year-on-year. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), however, posted a cautiously optimistic outlook for the rest of the year, reaffirming its target adjusted EBITDA of $1.6 billion to $2.2 billion, and adjusted EBIT worth $350 million to $950 million. 'The operating environment is highly uncertain, driven by a range of factors impacting global trade and economic expectations,' said President and CEO Eli Glickman. But 'we are confident that we have built a resilient business and will continue to benefit from the strategic investment in our fleet with larger, more modern, cost-effective capacity, approximately 40 percent of which is LNG-fueled. Supported by our lower cost base, we believe ZIM is well positioned to drive profitable growth over the long term,' he added. Overall, ZIM ranks 9th on our list of stocks that stole the show today. While we acknowledge the potential of ZIM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that has gone up since the beginning of 2025, while popular AI stocks have lost around 25%. If you are looking for an AI stock that is more promising than ZIM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
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Q1 2025 ZIM Integrated Shipping Services Ltd Earnings Call
Elana Holzman; Head of Investor Relations; ZIM Integrated Shipping Services Ltd Eli Glickman; President, Chief Executive Officer; Zim Integrated Shipping Services Ltd Xavier Destriau; Chief Finance Officer, Executive Vice President; Zim Integrated Shipping Services Ltd Muneeba Kayani; Analyst; Bank of America Omar Nokta; Analyst; Jefferies LLC Marco Limite; Analyst; Barclays Alexia Dogani; Analyst; JP Morgan Operator Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to ZIM Integrated Shipping Services first quarter 2025 financial results conference call.(Operator Instructions)I would now like to turn the call over to Elana Holzman, Head of Investor Relations. Please go ahead. Elana Holzman Thank you, operator, and welcome to ZIM's first quarter 2025 financial results conference call. Joining me on the call today are Eli Glickman, ZIM's President and CEO; and Xavier Destriau, ZIM's we begin, I would like to remind you that during the course of this call, we will make forward-looking statements regarding expectations, predictions, projections or future events or results. We believe that our expectations and assumptions are reasonable. We wish to caution you that such statements reflect only the company's current expectations and that current events or results may differ, including are kindly referred to consider the risk factors and cautionary language described in the documents the company filed with the Securities and Exchange Commission, including our 2024 Annual Report on Form 20-F filed with the SEC on March 12. We undertake no obligation to update these forward-looking this time, I would like to turn the call over to ZIM's CEO, Eli Eli Glickman (technical difficulty) Moment to address the market environment. In recent weeks, it has become even clear that we operate in a highly dynamic industry with a range of diverse external factors affecting both supply and demand in both the short and longer term. After 2-months of depressed transpacific volumes, last week, the United States in China announced a 90-day suspension on mutual tariffs, enabling a reversal of the trend in cargo movement between the two we view this development as positive. However, in the absence of a longer-term agreement, we remain cautious in terms of our expectation for transpacific trade during the remainder of the 2025. It remains too early to determine whether the surge in the demand we have seen in the last few days represents a return to normalized US-China volumes moving the updated USTR role introducing short port fees on Chinese build and own vessels has added another level of uncertainty. We are actively exploring a mitigation plan and assessing the financial impact of the proposed action. As we look ahead with our core focus on continuing to navigate the highly uncertain geopolitical and macro-economic conditions, we are confident in our agile approach and competitive position in the now to our financial results. Following an exceptional 2024, both financially and operationally, we began 2025 with a strong first quarter performance consistent with our expectations. Upscaling our fleet, employing larger vessels that have improved our cost structure, coupled with strong underlying demand once again drove double-digit carried volume growth year-over-year and enhanced number 4. We generated revenue of $2 billion and net income of $296 million in the first quarter, representing year-over-year increases of 28% and 222%, respectively. Q1 adjusted EBITDA was $779 million, and adjusted EBIT was $463 million, with adjusted EBITDA margin of 39% and adjusted EBIT margin of 23%. We maintained total liquidity of $3.4 billion as of March 31, which at quarter end included $382 million paid in early April as the final dividend on account of 2024 number 5. We remain committed to return capital to shareholders. While our dividend policy to distribute 30% of quarterly net income, our Board of Directors has declared a dividend of $0.74 per share for a total of $89 million based on Q1 the considerable uncertainty, we are maintaining our full year guidance ranges. To remind you, we anticipate adjusted EBITDA between $1.6 billion to $2.2 billion and adjusted EBIT between $350 million and $950 million, with better performance still expected in the first half of the year versus the second half. Xavier, our CFO, will provide additional contents and our underlying assumptions for our '25 guidance later on the number 6. Against the backdrop of the uncertainties that I mentioned before, planning is internally difficult, but we remain committed to a proactive approach. We continue to take steps in line with our strategic objectives that further enhance business resilience, both commercially and operationally, and competitive position in the the past several weeks, we have adjusted our network, underscoring the agile nature of our commercial strategy. Our actions are a response primarily to changes in the transpacific demand as evolving US tariff policy impact global trade. Initially, in coordination with our partner, we modified our service rotations to mitigate the impact of the drop in export from China to the United States while ensuring we maintain extensive port coverage to uphold our service light of last week's development, we are again realigning our network to account for a return back to more normalized China-US trade relations. Similarly, we have also reversed our initial decision to suspend our ZIM Central China Express line, ZX2 service, illustrating again our agility to react rapidly to changing market terms of other demand trends in the region during this period, we have seen improved volumes from other Southeast Asian markets such as Vietnam and Thailand, where we have a strong foothold. In recent years, we have expanded our position throughout Southeast Asia to benefit from the growth in manufacturing in the region and to diversify our business. This strategic positioning helped ZIM capture volume to partially compensate for the decline in Chinese cargo to the US during the beginning of the second are adopting a similar strategy in Latin America to diversify our operation and increase our business resilience. We are strengthening our presence in the region to take advantage of the anticipated growth in trade between Latin America and the United States as well as China and the the primary point to highlight in that ZIM has long recognized the importance of taking nimble approach to fleet deployment, identifying new growth opportunities and leveraging our commercial agility has been and continue to be a core strength for continue to maintain flexibility at all times to reshuffle vessel capacity based on demand. We expect to continue to react in changing market conditions as dynamically as possible. Our commercial success and improved profitability have been made possible by our transformed fleet. After receiving all 46 newbuilds we contracted in '21 and 2022, which significantly improved the efficiency of our operating capacity, we entered the new year deploying larger modern vessels well suited to the trade in which we growing our operated capacity for 2-years, we have regained optionality, which allows us to adapt ZIM capacity as market conditions change or our commercial strategy shifts. Moving forward, our goal has been to maintain and further enhance our competitive position while capitalizing on attractive opportunities that will ensure our fleet remains modern and with this long-term approach, we recently resecured 12-year charter for 10, 11,500 TEU newbuild LNG dual-fuel container ships from an affiliate of the [TMS Group]. This charter agreement will ensure access to an important and versatile vessel segment that is generally unavailable in the charter market and ideally suited for several of our global trades, enhancing our commercial agility and advancing our growth also represents a strategic investment in our core LNG capacity, which serve as a critical commercial differentiator for ZIM. As we expect, it will be commercially valuable with the growing demand from customers for eco-friendly shipping solutions. This vessel will also support our long-term decarbonization objectives. ZIM was an early adopter of LNG technology, which has helped us achieve significant milestones in our ESG we highlighted in our '24 ESG report, which we plan to publish shortly, we reduced our carbon intensity by 16% in 2024 compared to 2023. Moreover, in 2024 we surpassed our '25 target of a 30% reduction versus the '21 baseline, reaching a 35% decrease. We remain committed to ESG as a core value. And in this report, our seventh, we detail ZIM decarbonization road map toward net zero by 2050, together with a comprehensive overview of our ESG initiatives, achievement, programs and updated we remain confident in our strategy and competitive position in the industry. We entered 2025 with a transformed fleet of cost and fuel efficient capacity, approximately 40% of which is LNG powered today, and I'm pleased to have taken steps to advance our fleet strategy for the nimble commercial approach, together with the prudent investments in our fleet, equipment and technology continue to drive resilience in ZIM's business. On this note, I will turn the call over to Xavier, our CFO, for a more detailed discussion of our financial results, 2025 guidance as well as additional comments on the market environment. Xavier, please go ahead. Xavier Destriau Thank you, Eli. And again, on my behalf, welcome to Slide 7, we present our key financial and operational highlights. Our strong Q1 results reflect our success upscaling our fleet, supported by positive underlying demand trends. ZIM generated in Q1 revenue of $2 billion, a 28% increase compared to last the quarter, our average freight rate per TEU was $1,776, a 22% increase year-over-year, though 6% lower than the Q4 average freight rate of $1,886. Total revenues from non-containerized cargo, which reflects mostly our car carrier services, totaled $114 million for the quarter compared to $111 million in the first quarter of 2024. To remind you, since November 2024, we have been operating 15 car carrier vessels. Our free cash flow in the first quarter totaled $787 million compared to $303 million in the first quarter of to the balance sheet. Total debt decreased by $150 million since prior year-end. Throughout 2023 and 2024, our total debt increased mainly due to the net effect of receiving the newbuild capacity, namely larger vessels with longer-term charter durations attached. This trend is now reversing as repayment of lease liabilities is higher than new liabilities being the following slide provides an overview of our operating capacity. Eli has already discussed certain aspects of our fleet strategy, and I would like to highlight a few more data points that we believe are important to underscore when thinking about ZIM's currently operates 126 container ships with a total capacity of approximately 774,000 TEUs. Around two-third of this capacity comes from the 46 newbuild received during the last 2-years, 2023 and '24, which carried charter duration from 5- to 12-years, and also another 16 vessels that are owned by remind you, we opted to secure our newbuild capacity on long-duration contracts rather than continue to rely on the short-term charter market and that to ensure that we have secure access to fuel efficient and cost competitive view this our core capacity and as such, maintaining flexibility with respect to this capacity is a secondary factor, 25 of the 28 LNG vessels carry a charter period of 12 years, creating a predictability in our cost structure. Moreover, we hold options to extend the charter period for these vessels as well as purchase option, giving us full control over the destiny of these vessels very much as if we were the vessel had a similar agreement for the 10, 11,500 TEU dual-fuel LNG vessels we recently committed to with a charter period of 12 years and options to purchase the vessels at the end of the charter period. The remaining one-third of the capacity that we operate, approximately 260,000 TEUs, allows us to maintain important flexibility. By the end of 2026, there will be a total of 44 vessels up for charter renewal, with 22 vessels or 81,000 TEUs up for renewal in 2025 and another 22 vessels or 74,000 TEUs in optionality to keep the capacity or we deliver to owners allows them to adjust its capacity according to changing market conditions or shifts in our commercial strategy. Longer term, our focus is to ensure that we maintain and continue to enhance the competitive position of our turning to additional Q1 financial metrics here on Slide 9. Adjusted EBITDA in the quarter was $779 million or 39% EBITDA margin compared to $427 million in Q1 2024. Adjusted EBIT was $463 million or 23% margin, compared to adjusted EBIT of $167 million in the same quarter of last year. Net income for the first quarter was $296 million compared to $92 million in Q1 you will see that we carried 944,000 TEUs in the first quarter compared to 846,000 TEUs during the same period last year. That represents an increase of 12%, way ahead of market growth of 4.5%. Our transpacific volume grew 11% in Q1. It is important to reiterate that we maintain flexibility to reshuffle vessel capacity as the market evolves, driving resilience in our we achieved a 22% year-over-year volume growth in Latin America in this first quarter. And we anticipate further increasing our market share in this trade as we continue to strengthen our presence in the here, we present our cash flow bridge. For the quarter, our adjusted EBITDA of $779 million converted into $855 million of cash flow generated from operating activities. Other cash flow items for the quarter included $582 million of debt service, mostly related to our lease liability repayments. Debt service in Q1 cash flow includes $72 million, reflecting repayment of lease liabilities related to the two secondhand 8,500 TEU vessels we acquired in the quarter as well as the down payment of the last remaining LNG vessel that we received in now to our 2025 guidance. We have reaffirmed our outlook and expect to generate adjusted EBITDA between $1.6 billion and $2.2 billion, adjusted EBIT between $350 million and $950 million, with the second half still expected to lag the first half. We have maintained wide ranges reflective of the high degree of uncertainty related to global trade and geopolitical touching on our underlying assumptions regarding freight rates, volume and bunker costs, I would like to update on our contract volume. As can be expected, contract negotiations this year were affected by the uncertainty regarding tariff levels. And as such, the new annual transpacific contracts, which went into effect on May 1, represent approximately 30% of our expected transpacific volume for the coming year, somewhat similar percentage to the one of last view on freight rates and operative capacity are unchanged as compared to our guidance assumptions from March. We expect freight rates to be significantly lower in 2025 versus 2024, with average freight rates in the remainder of 2025 lower than Q1 average. Also, we currently assume the sailings through the Red Sea will not resume this year, continuing to absorb significant assume that we will maintain similar operating capacity on average to that of 2024 over the course of the year as we renew some of the existing capacity or similar tonnage, though at lower rates than those fixed in '21 and '22. As such, we expect to continue to see an improvement in our cost our exposure to the transpacific, we revisited our volume growth assumptions and now assume low single-digit volume growth year-over-year. Finally, as for our bunker costs, we now expect slightly lower cost per ton in 2025 when compared to we open the call to questions, a few more comments on the market. The current environment is marked by a range of factors greater and more diverse than ever, which significantly impact the supply-demand balance we typically track to assess the health of the industry. The expected growth in capacity is known, the current order book to fleet ratio is significant, approximately 29% or about 9 million TEUs of equivalent capacity. But there are mitigating factors to consider with short-term and long-term the delivery schedule for this capacity is spread out over the next 4.5 years, with more modest deliveries in 2025 and 2026. Scrapping has been minimal in recent years and projections for the coming years are also low, resulting in an aging fleet. At some point, scrapping should catch up. Also the industry's decarbonization agenda and the need to meet stricter emission targets or customer's expectations will also require a higher pace of fleet renewal and confer further the most significant factor impacting supply today is [exogenic] to our industry, the re-diversion around the Cape of Good Hope. As the current consensus is that we will continue to do so for the coming months, the outcome for 2025 are likely to be mostly driven -- demand driven, namely when and how we see resolution on US week's agreement by the United States and China to bring down the level of mutual tariff for a 90-day period is a positive step and will allow demand to recover at least in the near term. It could also be viewed as mutual recognition but both sides of the need to reach an agreement. The efforts of the current US administration to address its trade deficit are not yet tariff rates that will typically be established between the United States and China as well as other US trading partners will determine whether demand can return to previous levels or whether tariff levels will establish new trade barriers. Equally important is the timing of these agreements as the ongoing uncertainty on tariff levels impact purchasing and, as a result, booking decisions leading to possible disruptions within the supply these tariff actions will motivate trade and manufacturing diversification as both the US and China will most probably seek to reduce their mutual dependency. This, in turn, will further complicate supply chain management, which could present both risks and opportunities for our industry and also require further investment in inland and port infrastructure, which in sufficient could hold higher potential for you. And on that note, we will open the call to questions. Operator (Operator Instructions) Muneeba Kayani, Bank of America. Muneeba Kayani Thank you for taking my questions and thank you for the detailed commentary around what you're seeing in this market environment. So firstly, on the market side and demand, what are you hearing from customers in terms of inventory levels right now? And we clearly have seen the surge over the last couple of days. Are you kind of expecting possibly an early peak season in ocean shipping this year and then a slower end year-end? Just wanted to understand some of your thinking and feedback from question around Red Sea. There was some news recently that the Suez Canal expects -- the authority there expects lines to resume transiting through the canal within a month after they offered some discounts on those fees. And so I think you just said that you don't expect it to open. So how are you thinking about that situation currently from an industry perspective as well as from a ZIM perspective?And if I may ask a third question, I totally understand maintaining your guidance at this point. But now with 1Q behind you, and you clearly said that the (inaudible) second half comment. Can you give us a sense of where do you think you'll be at this point landing up within your range, upper end or lower end mid-point?Thank you. Xavier Destriau Thank you, Muneeba. Starting with your first question with regards to the market and the demand, what do we hear about the inventory levels of our customers. Clearly, I mean, we've seen ups and downs in the market over the past few weeks, in line with the changing situation with respect to tariff. So if we go back a little bit in time, when the 145% tariff barrier was announced not so long ago, a few weeks ago, 5- to 6-weeks ago, that had clearly a significant immediate effect in reducing and canceling the bookings that we've the volume of cargo being moved out of China went down meaningfully from almost 1 day to the other. So as a result, clearly, on the other end, on the receiving end in the US, retailers have had to tap into their inventory levels in order to continue to offer products to their customers. And that was always a debate and a risk that if the situation was to remain as is, at some point, inventory would dry out and the risk of [empty shelves] in the US was looming the recent announcement of a pause in the 145% tariff had also an immediate effect to somehow revitalize the demand, and pretty much all the shippers were willing to bring cargo as quickly as possible for many reasons because of the threat of no longer having inventories, I believe, is one. But also because the window is for now known of being 90 days and what will be thereafter is still very much unknown. So I think everybody is trying to take an opportunistic view here in this respect to try to move cargo during the times when the effect of the tariff are potentially is that -- does that mean -- and you're right in saying that from a timing perspective, this is potentially not too far away from the start of the peak season. Maybe we are a month in advance here in this respect. Time will tell. I think the more important element that will allow us to have a more a definitive view as to how volume can look like for the second half of 2025 will be very much where will we land from a tariff discussion perspective once the 90 day pause has elapsed, which is now coming up soon, July respect to your second question, the Red Sea. Yes, today, we are of the view that it is more likely than not that in light of the current situation that continues to prevail in the Middle East, the Red Sea canal will not be used by the industry for the foreseeable future. I think -- and we are, of course, well aware of the incentive that the canal authorities have conveyed to the market, trying to attract capacity back to the canal. The way we look at it is clearly for us, we will only come back to the canal when we are certain that it is safe to do so. We will not take any risk with our will not take any risk with our assets in terms of vessels. We will not take any risk with the cargo or the customers that we also importantly, we will not just give it a go and try because what I think is important to remember is that now we have a stable network going around the Cape. And if we were to return and when we will return to the Red Sea seat, this in itself needs to be for the longer time. We cannot go in and out and assume that this is neutral to the repositioning of the vessels and the effect that it has on our network. So that's why, for us, it is not really a tariff discussion or a canal fee discussion. This is not what is preventing us today from crossing the canal, it's very much the safety concerns that we believe are still extremely then to your last question on the guidance, I think you will agree that it is extremely difficult today to have a clear view as to how the situation will be like, especially, again, after we've gone through the various milestones that are ahead of us. I mentioned July 9, which is a key date where also the discussions on the tariff levels that will potentially prevail for all the countries, but China will potentially also will get to the end of the 90-day period. August 14 will be the end of the 90-day pause on the China tariff. So those key dates are still ahead of us and depending on what will be the outcome here will have a significant potential effect on the financial performance of the company going into the second half. So that's why we kept a wide range of options in terms of guided figures both for EBITDA and EBIT. Operator Omar Nokta, Jefferies. Omar Nokta Thank you. Hi Eli and Xavier. A couple of questions for me. Xavier, you mentioned the 2025 contracts on the transpacific will be around 30% of volumes like they were last year. Back a couple of months ago, you mentioned you had a bit more of a constructive negotiation period and that you were -- it sounded like you were going to go back to maybe a 50-50 spot versus contract. We know, obviously, a lot has happened between March and May. But can you give color as to maybe what happened or what drove the decline in this -- in that expectation going from 50-50 down to 30-70? Xavier Destriau Sure. Thank you, Omar. Look, I think what I should start by saying is that this year, just like last year, when we go into those discussions with our main customers on the transpacific trade, the state of mind has been the same. So we were indeed open to up to a 50% contract and remaining exposed to 50% to the spot market. But also, and just like last year, we had a minimum rate that we are not willing to compromise on in terms of expectation, a rate per customer that we believed was the fair rate for both parties to agree and settle the discussion this year were very much also affected by the current market uncertainties with respect to the trade and tariff discussions. So we also had some of our customers that were more on the wait-and-see mode. And this is why, again, at the end of the day, the outcome is the one I mentioned. I mentioned that for the reason I explained, from a customer perspective, maybe a little bit willingness to wait before to commit. And from our end, also the clear instructions given to our commercial team to not go below certain rigs that were preagreed internally led to this outcome of a 30%-70% split. Omar Nokta Okay, thank you. And then just kind of shifting a little bit maybe towards just volumes and expectations. You're talking now for '25 low single digits versus single digits initially expected. I know it's not a substantial change, but wanted to get -- maybe if you could qualify what's behind that? Is that because of what you saw in April and so you've adjusted accordingly? Or is it more perhaps a more modest outlook for the remainder of the year? Xavier Destriau There are second things here. First of all, I think when we look at our volume in Q1, we are very pleased with the 12% volume growth year-over-year. However, initially, we had expected a little bit more than what we delivered. And we faced a few weeks after Chinese New Year, the recovery of volume out -- in and out of the US was a little bit -- took a little bit more time than what was initially that's one of this volume that we did not carry in the first quarter may not be caught up in the future ones. And the second element is also, as you know, we've transitioned to a new partnership with MSC, working away from the 2M. And that transition as well has a little bit of effect in the overall utilization of the fleet, and that contributed as well to a little bit less volume being that two -- the conjunction of those two elements I think explain what has happened between now and May. And now also looking forward, we clearly do see a pickup in the demand from cargo movements between China and Asia to the US. We also, as Eli mentioned, did take decisions to redesign and adjust our network not so long ago. We are now canceling those decisions and bringing the capacity back. So that also has a little bit of an effect in the overall utilization of our fleet as we need to reposition some of the that's mostly why, overall now, we are a little bit more conservative in our volume assumptions for 2025 when compared to what we communicated earlier on in March. Omar Nokta Okay. That's clear. And then a final quick one, perhaps, and then I'll turn it over. Are you able to give what portion of your transpacific volume is direct China US-related? Xavier Destriau You mean out of the transpacific, what is the weight of China in our loadings? Is that the question, Omar? Omar Nokta Yeah. Yeah, just basically the bilateral relationship, China-US, US-China, that portion of the business, perhaps maybe 2024? Xavier Destriau Yeah. That's the significant majority of the cargo that we move originates from Asia to the tune of 60% to 70%. The rest would be Southeast Asia, neighboring countries, Vietnam, Thailand, Korea, you name it. Operator Marco Limite, Barclays. Marco Limite Hi, thanks for taking my question. I've got two. So the first one, the CEO clearly mentioned in its opening statement, but if you could comment a bit more about your exposure to the US port fee. So if you could just remind us how much of your fleet is Chinese build? And what are the actions that you call -- take in order to mitigate the risk?Second question is about your, let's say, Q2 outlook in a way. So you have reported a very strong Q1. Now if we think about the second quarter, spot rates are possibly going up sequentially because of the disruption and volumes are seasonally stronger. So do you think it's right to think about the Q2 profitability that is up quarter-over-quarter? Or in Q1, there is any sort of special effect, maybe delay in revenue recognition, which will have an impact in the second quarter?Thank you. Xavier Destriau Thank you, Marco. First on the USTR and the fee that will potentially be required to be paid by us if we were to call the US with Chinese built or owned vessels. We are clearly looking into it right now. To answer your question, the fleet that we operate globally as we -- as you know, we've changed meaningfully the profiling of our fleet over the past couple of years, '23 and ' is when we brought those 46 brand-new ships that today allow us indeed to be far more competitive in our industry. But as those vessels are recent, we are more exposed to Chinese built tonnage than maybe some of our competitors that have not had such a big newbuild activity over the past couple of just to give you a little bit of an indication, we, today, when we look at the fleet that we operate, the 780,000 TEUs of equivalent tonnage, a bit less than half of it is Chinese build and the rest is non-Chinese. So when we look at the potential levy or fees that may come in, in October this year, clearly, we are now, first of all, looking at how we can shift swap tonnage between trades to ensure that we minimize the effect of that fee on our cost as a result, avoid to having to incur incremental cost that we would need to, at some point, try to recover. So it is work in progress. We are looking at what are the options that we can take here, again, in a view to ensure that we minimize, if not neutralize, the potential impact on -- of those respect to your second question, I think I understand what you have in mind here. Clearly, as we said, the volume is picking up over the past few days. We've seen that, as I'm sure you have as well. As a result, also when the demand comes back up, the rates tend to follow. So it is a likely scenario that at least for the few weeks to come, there will be a positive driver to support the profitability of the trades. But I think what we are very careful about is how long will that last.I'm going to go back to the key dates that are still ahead of us. Yes, of course, we are focusing a lot on China, and we have up until August 14. If nothing changes, this is the 90-day window where maybe trades will be supported in that period. But we also have, as I mentioned earlier on, in between or July 9, still the key data as to what will be the situation with respect to tariff levels that are today back to a minimum level. But we don't know if that's going to persist after July 9 for all the surrounding countries around China, Vietnam, Thailand, Korea, Cambodia that I was talking about not so long ago, those may be hit hard if there is no resolution between the those respective countries in terms of trade discussions. So there is a lot of uncertainties still ahead. Yes, good news to start with. However, how long the momentum will continue is the big unknown. Marco Limite Okay, thank you. And if I could stick one very quickly. So over the last 1- or 2-weeks, China to the US has recovered very, very strongly. How the other trade lanes are doing?Because my understanding was that other Asia to US was very strong as an offset to China to the US Are those trade lanes -- has those trade lanes normalized or they are still very strong as well?Thank you very much. Xavier Destriau I think today, where we see a lot of movement in a way and fluctuation and variations are clearly those trade lanes that link China and Southeast Asia to the US I would say that on the other trade lanes, it's more business as usual, if you will. Operator Alexia Dogani, JPMorgan. Alexia Dogani Yeah, good you for taking my questions. And just firstly, can you discuss a little bit about your kind of network development thoughts near term? I think in Q1, you kind of exited from transpacific trade. Where did that capacity go? And how quickly would you reintroduce services in the region? Should there be a kind of more lasting kind of trade policy agreement?Then secondly, can you help us distribute your capacity in different kind of charter duration buckets? If you talk about how much of your capacity can renew within the next 12-months, how much between 1- to 5- years and how much over 5-years, that would be quite helpful to understand kind of the then finally, are you looking at all to kind of your cost base more structurally when you think about unit costs compared to, let's say, prepandemic levels, where there could be some savings, where could those savings come from so we can understand a little bit current levels of profitability on I guess, kind of current spot rates. Obviously, last week was a big move. But just to give us kind of a broad understanding of how close are we to breakeven you. Xavier Destriau Thank you, Alexia. So taking your questions in order, the first one with respect to the network. I think what we mentioned is, indeed, we've tried and we will continue to try our best to always dynamically react to changing market conditions. And we have reacted and we did react following the hike in the tariffs between US and China, and this is precisely what we did to suspend, and we announced the suspension of what we call our [ZX2] service, which is a service linking China to the West Coast to L.A. because we did clearly see the bookings from China dropping meaningfully, as I mentioned earlier on, following this announcement of 145% a few weeks later, we are in a very different situation. And indeed, with the pause in the enforcement of this 145% tariff, we've announced that we were unwinding our decision to suspend and we have reviewed the service as from next week. So we are very quick and very fast. And I think agility is the name of the game here to try our best to anticipate changing market conditions, but more importantly, because anticipation is difficult, and more importantly, to react extremely fast to changing market to your point, yes, we did announce not so long ago, the suspension of that service to a few weeks later, come back and know this announcement and resuming the service between Asia and the West Coast. With respect to charter duration, what we -- when you look at the capacity that we operate today, 780,000 TEUs worth of capacity, two-third of that capacity is old or long-term charter. Precisely to your question, we define a long-term charter commitment that exceeds 5 two-third, 520,000 TEUs today are either owned, and that is 16 ships, give or take 100,000 TEUs. And the rest, [460,000 TEUs,] give or take, is chartered for a period of duration exceeding 5 years. And that allows us to have a clear visibility on our cost structure because those charter rates are also, as I mentioned earlier on, we have options to extend. We have option to buy those vessels at the end of the charter duration. So we have a clear visibility of what the cost structure of the company can be as far as those vessels are concerned for the foreseeable then the rest, so one-third, 33%, representing 260,000 TEU worth of capacity are made of smaller-sized vessels that are being chartered and sourced from the short-term charter market. So here, as we say, less than 5-years. And even today, when we look at the profiling of this tonnage, it is maybe even to the vast majority less than 3-years. So we have 80,000 TEUs of capacity that comes up for renewal in '25, a similar number in 2026, which gives us the flexibility to adjust at least some of the capacity that will operate in the coming then lastly, to your question, when we look at our cost structure and where there are, of course, areas to potentially improve. We are always looking, obviously, at extracting cost in our cost structure. I think we've done a significant -- or achieved a significant improvement by finalizing our fleet transformation program. But what we are also looking at right now is maybe as opposed to reduce costs, to also try to avoid cost that could potentially be not incurred. And this is ensuring that we are doing a better job in reducing the repositioning of empty that requires tools, digital tool to know precisely where the equipment is, where the equipment will be in the coming weeks in order to motivate also commercial -- the commercial team to take export cargo and make sure that we optimize the flow of equipment. So I think that's one area that we can talk one is clearly also, as you know, we've been, and we will continue to invest heavily in further digitizing our industry and our company in order to also make sure that our customers enjoy a seamless experience when working with ZIM and potentially interest us with their cargo more than to others. So that will continue to be a key element for the the one thing that, unfortunately, we do not really control, is the cargo handling charge that we pay on the -- what we call terminals. And as you know, the effect of the discussions that took place between the unions and the terminals in the East Coast led to an increase in the cargo and in charge in the US, and that obviously is somewhat affecting our cost structure. Operator Thank you. This concludes our Q&A session. I will turn the call back over to Mr. Glickman for closing remarks. Eli Glickman Thank you. We are pleased with ZIM strong first quarter of 2025, in which we grew carried volumes by 12% year-over-year and delivered improve profitability. Our performance reflects the benefit of our transformed fleet, improved cost structure, outstanding commercial agility and execution as well as strong underlying demand during the first part of the year. We continue to share our success with investors and declared a dividend of $0.74 -- correction, $0.74 per share for a total of $89 million, consistent with our dividend policy and capital allocation a few weeks, ZIM will mark its 18 years anniversary. For a humble beginning as an operator of a single passenger ship, ZIM has established itself as a global container shipping company, holding more than 330 ports and serving over 30,000 customers worldwide. We are proud of our market position and the reputation we have among industry players as an innovative provider of seaborne transportation and logistics our successful strategic transformation and fleet renewal program, we are confident even against the backdrop of highly uncertain market environment that our differentiated strategy and enhanced industry position will drive sustainable goals over the long you again for joining us. We look forward to sharing our continued progress with you all. Operator Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now you so much for today. We're all clear. 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