ZIM - Earnings call 3 2023 | ZIM Integrated Shipping Services Ltd.

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Operator

Hello. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the ZIM Integrated Shipping Services Third Quarter 2023 Earnings Conference Call. [Operator Instructions]I would now like to turn the conference over to Elana Holzman, Head of Investor Relations. Elana, you may begin your conference.

Elana Holzman

welcome call. ZIM's and financial quarter operator, conference results you, everyone third to XXXX Thank

on call CFO.Before me during make CEO; would Joining forward-looking the to the and President Glickman, like current expectations, call, Xavier and course caution predictions, ZIM's statements of expectations Destriau, we including you regarding ZIM's only are remind reasonable. assumptions we our this I today begin, expectations that are will projections of and events reflect actual future that materially. statements events wish and or you to or results. the differ, such company's We believe that may that Eli We results

Commission, the in filed report our Form are this referred company update XXXX XX-F the that on You would We Eli? XXXX. statements.At call in forward-looking to Glickman. and time, CEO, Exchange over cautionary to with obligation risk I the to undertake like Eli including documents to these the ZIM's language no described consider annual filed kindly March and factors turn Securities

Eliyahu Glickman

and Thank Israel. call address to our we to like turn would I today, ongoing everyone you, war situation the welcome today's in call.Before Elana, to

times, with parents, and their of by October the and And During thoughts husband hostage owns pray lost these ones the lives, grandparents held and children, who and loved safe tragic for events X. our We return in wives stand this their our their trying terrific support are in of families people and we by terrorist and communities who Gaza. are attack. affected of immediate Hamas

from continuing war-related operation to drive are operational our continuing and interruptions. needs employees our in level maintaining and to Israel strict Our result Israel, and including ensuring customers, business customer priority well-being, highest of and our the to everywhere, ZIM forward.Despite is while care their services challenges, meet standards delivering the assisting

about in XX% X,XXX XX path As transformation ZIM's will to of Israel.Turning discuss shipping our and for I more only world, or launched third imported ports countries financial significant over XX,XXX in XXX forward. a years volumes mid-XXXX our employees, including company, nearly at and serve from do cash company through which quarter the exported aspect historic today our strategic net back X.X period customers with global to a of around stood over results. ZIM over than at business, worldwide, financial our our billion. has we $XX involves which balance, delivered results income of XXXX, XXXX, the This every led billion. exceptional profitability quarter end of to $X of way

provides that had important has anticipated, weakness believe we longer fleet the and well successful downturn. will We is period this to is to market us historic extended ever come. to on that it prepare liquidity profitability best originally allow leveraged in of than stronger emerge trades.Specifically, capitalized a to than core ZIM we to IPO our competitive for with a While advantage note ZIM our ZIM extended positioned strong years the weather

are we agreements, newbuild program LNG ships, of will be power. a total dramatically a executed fleet and through XX our XXXX, of secured profile XX charter which series First, flat container In ZIM's renewal different. of

will fleet and Our more much fuel be cost-efficient. younger,

trade size better the and to average we bigger operate. in Our which be vessel suited will

such, in We deploy only TEU our service. our to vessels we intensity the X carbon XXXX from ZIM LNG Asia LNG positioned our Coast. Baltimore plan on as LNG services LNG in well support lowest will only expect of reducing operated operators the in X,XXX of footprint. carbon the even to carrier U.S. to end to By different East have with their XXXX, we already our is X/X capacity operate will operating we vessels today, vessels one making the customers approximately industry.As of to power, ZIM be But be the

In addition Asia deployed XX,XXX East U.S. service. TEU service, premier with vessels on ZCP to the Coast our LNG

billion propositions. with industry, youngest almost fleet our and program, purchased we we of which worth operate this [ renewal well containers high-value ] we Today, reefer the to a reefer fleet own investing cargo. serves in particular Second, as the compete complement $X us in focus our for on

entered core leverage customer-facing agreement improve commercial and excellence. we to into Third, invested pricing. profitability promote supply technology and to as operational digital supply we Shell a to tools customer LNG view last, strategic it secure applications strength with back-end competitive to propel And the in and at experience.We and

understood fuel to us we and profitable to the company. to and long-term fleet And shipping was will carbonization make container strategic and ZIM the have planning tracking friendly we companies. to capacity redeliver closed improve ZIM developed also on ZIM fleet, cutting-edge in and We LNG-powered invest by notifications.As the tonnage cost-effective years' our of the COVID-era of efficient make core continue XXXX, project van of ZIM's take subsequent install industry XXXX, Systems, a needed but its to transition address that portfolio cost will door one the open an were alerts first is dry our shipping we with the more equipped value-added fleet enable considered going and container industry This entire goal newbuild period. older position such fuel We direction to services and technology steps transition to agenda drive both to a will in anticipated to fleet, less one which XXXX ship reliance be expensive -- in base to these less to in be ZIM's geofence as of that Hoopo entire X carriers of charters. efficient were fleet. our the extensive manage period, this better process new and a the cost devices on delivery newbuild the currently device. us The back are growth.During as effectively continue also customer will and tracking gradually environmentally years, offer resilient

vessels per are fleet our further Our expectations.During on highlight we XX,XXX And expect this cost of Coast to ZIM throughout to the newbuilds our sustainable LNG At strategic year transition forward. have organization and meeting declining. and the to profitability. this would TEU XX cost remaining saving East our even added that improvement on U.S. moving service XXXX. exceeding Asia we TEU ZCP period, X returning we already deployed I focused are our is entire the XX is secured long-term

already steps we will whenever We we possible challenges, that to initiative capacity years rationalize our also existing X current to navigate XXXX, we X and same we as up expect redelivered another taken owner cash have in to levels. fleet year in and align end.We to undertake XX market In renewal for minimize our redeliver XXXX. time, back vessels XXXX expect deliver better will with the XX the by result beyond. have This allow demand charter near-term to At another vessels us began burn. ago to have vessels

reallocate continue We to also and network. our our review adapt resources to services

attentive opportunities to our customers' evolving and with are new advantage profitability We needs potential. commercial and taking focused growth on of

an are of service in ZEX More air the a America to presence customers slightly we consistently In Coast carried to looking our ocean its announced service, opened to e-commerce L.A. and this America the hearing now volume decided X recently our freight year. launch carriers we but we early example, launch, this X also recently, Since we market West that America. lines reinstate the we have from For our that for Colibri trade. from connecting East of Today, in additional transit the are of Latin offers top fraction longer of cost.We expedited China our service, grown XXXX, at the the Latin are time South on Coast. South expanded targeting they U.S. to we one again compared

control arrangements with a South cost better with slot Furthermore, initiatives fuel-efficient charter operative others, While achieve market. capacity network, we approach region, variable market fleet diversify position sharing, collaboration chain.During is MSC, us new purchases vessel cost collaboration have bunker improve program HR with is that newbuild in low also use efficiencies our U.S. future.In to in leveraging growth in and and to arrangements industry elsewhere, more in a similar announced industry's this as will to quarter, structure. to remain hiring cost, lower that potential cost is cost Shell This our include cost constantly costs; agreement during handling with among cost no These improvements pursuing our control, storage and the to importers parallel, we optimization the across with Mediterranean, the continued reach in that this cargo agreements our new costs, opportunities of as to workforce wide and largest delivering as savings. seek supply range this versus and are steps actively significant we period trades such carrier, the operational redeliver fuel; of we to Northern course, These our their connecting in believe terminal-related, conditions include, dynamics; a already challenging leveraging Europe with early. the particularly and third Subcontinent seeking avoidance ensure order our sulfur LNG and strict Oceania. port Eastern aligned initiatives Mediterranean our enhance consistent with partnerships services latest Asia East headwinds services, swap Indian Eastern connecting of believe

initiatives We expect and savings. generating to continue these sustainable measurable

will order our we investors long-term and forward, capitalize in seek on alike. value to our continue to customers Moving and strengths create capabilities to for opportunities

uncertain, a our to Although view.Turning results. maintain near market our us long-term conditions enable future the third are ample for to quarter cash

in environment demand million. freight EBITDA of Our operation performance the generated August million. $XXX million rate saw results current XXXX, soft was $XXX we and reflect -- the increases weakness and in In loss The adjusted from deterioration. EBIT $XXX QX trading we adjusted the Transpacific rate continued of of third flow Cash persistent showed. quarter were with

of now year, we of EBIT no to expectation during full improvement of remainder million. forecast. have mentioned, we $X.X adjusted end.Based rates, million approximately $XXX our 'XX liquidity total We $X.X and on of generate position the loss to an adjusted $XXX to at maintained results, EBITDA months lowered cash million expect with in X quarter billion year $XXX billion the already strong freight of our material this As a

quarter. ZIM Despite $X.X this in losses a Given this we a the incurred impairment outlook 'XX, negative the is resilient of in company. recorded near-term, billion non-cash

CFO, will us indicated, prolonged I a return mark to cash 'XX financial environment. please. Xavier, downturn. I over the as And results, more Our a for the Xavier, discussion additional will and as ZIM that point turn we will and the turning guidance note, strong our our believe impairment detailed market for well to withstand this as already revised of on this balance call help our comments profitability.On

Xavier Destriau

everyone.On Slide financial and welcome again, and results. X, we Thank present Eli, you, key operational

Eli current reflected our the third performance quarter mentioned, of ongoing As weakness financial the market.

year, TEU year-over-year. Our third XX% rate That $X,XXX. XX% And months per the year. freight average similarly the the freight quarter last comparable rate X $X,XXX during decline of than period lower of a our was first was average is

is versus quarter Our third to higher TEUs rates. continued last market the revenues of billion. third this carried also approximately X% impacted decline QX in $X.X slightly.Revenues and X%. our compared adversely were looking volume volume freight year's carried growth the of were sequentially, again by XXX,XXX quarter, increased for And

first compared quarter the in third X last by flow XXXX totaled of durations. million revenues XX% charter balance months end, now Total with longer of of term to effect year the $X Our lower vessels $XXX of incoming debt the than of in to due cash third net billion for $XXX months were since increased in quarter billion to Free prior the $X.X mainly million year. the first XXXX.Turning the sheet. the X

average in expectations weeks billion into in of the turn in mainly for deterioration little we interest addition, namely As for consider container increased also meaningful freight near-term, needed with XXXX.In capital. previously shipping of recent our cost observed $X.X rates, non-cash our mentioned, in increase this negative we to in rate impairment also driven by recorded the a outlook recovery quarter, the which

container company the of this recognition are flow our allocated previously cash in also generate the boxes lower discounted impairment non-cash vessels, going forward expected been charge. primarily resulting related projected, This equipment, to assets. but the has and may result, assets, a impairment As other container than shipping-related

adjusted And the of excluded Statements. information that this Note test also QX You our from Interim non-cash results. EBIT impairment our EBITDA in adjusted on note impairment Financial additional can find XXXX X I and would is from the our

XX charge containerships Our net and $X.X currently this quarter of car our the vessels, XXX loss fleet, billion.Regarding billion operate includes XXX for impairment carriers. we $X.X

of our in now have LNG-powered duration XX.X XX Excluding months compared X,XXX committed delivered to, redelivered mid-August. average chartered before XX down the periods TEU charter And months end the vessels ship.Year-to-date, addition, in the charter TEU ZIM Of current trend is and tonnage capacity, XX,XXX vessels including X year to-date, first and year. and have newbuild another newbuild X vessels we LNG remaining have also vessels to the XX XXXX. been continues to the XX periods we of who in chartered end next concluding the vessels XX.X

compared results months which present X, tonnage, the So adjusted total, revenue in modern, first XX% to the during contributing we period. the for to and delivery delivered environment all newbuilds to to these freight X The rate of therefore, QX at same XXXX $XXX us and quarter decline year. unit and be smaller, or quarter our was quarter base.On in the we lower margins XX% the and third on current X XX $XXX the Slide XX% these the months EBIT compared of will like Adjusted here impacted to respectively to I million that to be based last EBITDA minus reiterate vessels our renew the last EBITDA third to less loss vessels, would cost-efficient lowering XX% year. financial could of in rates ZIM's the QX lower million. cost-effective owners of and in replace cost delivered metrics. we expect and EBIT Adjusted XX was were Again,

X is adjusted EBITDA This first period was in XXXX, XX% in months margin was the to adjusted margin XX% of minus compared EBIT and the X%. and XXXX. XX% For comparable

impairment includes loss to $X.X billion.Moving quarter, of the X. mentioned, was This net on and $X.X already billion; as charge Slide

Transpacific I the year. carried uptick in last As we Latin third to quarter driven volume was mentioned, in America. of by increase saw and compared a our The slight growth

in primarily a Latin the to growth and with We our cash small again review carried by versus volume investment quarter the $X.X also position total the flow liquidity also and quarter cash saw slides, now billion, of which America and for includes trades.Turning couple investments bridge bank in equivalents period. next X driven increase ended with quarter of deposits cash, other prior the We instruments. third a Transpacific the months I'll and

from with change our $XXX adjusted third of working EBITDA million, cash a from generated capital, positive our of operating quarter the effect XXXX, $XXX into coupled million activities. During of in converted flow

of million For million adjusted debt months into the of X liability rates XXXX freight adjusted $XXX In lease $XXX of payments months adjusted now recover $XXX $XXX activities. to our from trades, for of to to generated guidance. billion the slightly billion continued is year. the revised guidance of service, dividend loss for with EBITDA generate our freight overall million we $XXX period items $X.X period, operating cash This to the to light converted be compared in assumption all to our million million $XXX the to and revising of levels do year cash related are EBITDA and EBIT X on included not and now flow expect current of flow revised our rates in deterioration prior across that will volume from mostly forecast our based $X.X million. lower repayments.Moving Other

the time, be the is our you demand remain going the would the our XXXX meeting management the same clear remainder into the positively for of the headwinds, expenses is is weak see and right. our can clear as section. that that on freight are with left, remainder current impact of carriers. in XXXX adjusted of taken lower.Moving actions highlight At which see to EBIT limited believe view market. one and by the continued on to impairment as XXXX, market pointing unchanged, the to XXXX in our remains rates forecast capacity for prices Our also oversupply oversupply Alphaliner's depressed, market depreciation that for the from going include outlook recorded by you inflation of quarter assumptions it can bunker supply-demand XXXX. in forward we I I impacted

SCFI Here, which us, graph rates period.We key here XXXX Coast, rates our we to to show volume pre-COVID months a of trade approximately compared other years provide XXXX better also excluded granularity from XXXX. the XX% East U.S. the for for in the for accounted and the as where to X are since

saw retailers same of cycle not You blanking are clearly that from rates we can some while market side, in declining when freight a XXXX.On see short-lived broader significantly levels inventory year third restocking rates high and soon. costs data that levels following August that working the decline when to seen we quarter, anytime as today rates are demand points no growth higher and the are today versus the in compared lower and begin XXXX are there will have in clear through the inventories, improvement are

to As it demand. seem industry not while capacity, growth carriers sufficient in have to management remains other of September, remained also remained or lasting limited also same hand, X% At terms deliveries for from of higher count. compared XXXX the of XXX,XXX at of and the with steaming Scrapping each idling will in some September near-term the the period. does of taken recovery meaningful capacity such, the vessel has employed -- to been our with on Alphaliner's totaling result sustain in TEUs scrapped for projection that not these carriers. TEU in inactive been capacity X the are worth same X almost time, next has by approximately XXXX scrapping but rates.Slow negligible only expected TEUs for continued impact the Blanking million only million on XXXX in X.X volume delivery limited by January years XXX,XXX compared from coming limited during each with periods in capacity rates. time TEU X% have action has combined.Finally, employed, standing to of and XXXX

idled XX% capacity open to X.X% a lower that Thank was the While point, XXXX, note, currently over has tonnage to achieved will February. was the failed call when when also increased compared And course is idle dramatically hit the of it that of COVID you. the now your questions. we and reference XXXX peak the as in mid-XXXX over in demand just mark.On

Operator

question Your from comes [Operator first Omar Instructions] the Nokta of Jefferies. from line

Omar Nokta

Thanks here. good the detail update. some for Got

had the perhaps the to of but Just billion questions, balance a couple wanted I ask, of cash you've on got sheet. $X

You've got the liquidity there.

Just regarding write-down, basis this $X you we non-cash. down. depreciation how just But running is now obviously, a it's billion Xavier, how come think basis? And for what on going on an the means general, to cash just costs in mentioned ongoing about actual should

Xavier Destriau

Look, concerned, cost the the as said, as impairment on a far no has like basis, is rightly, effect. cash you

lease repayment in is of depreciation now will profile we and amortization. that be third unaffected booking is impairment terms So affected by our indeed that in are liability, the being What the quarter.

P&L And our EBIT $XXX basis. on depreciation to guidance, result as is the quantify to million. incurring what a the So this quarterly up our in of will the difference is of less between and look EBITDA, EBIT now us go impact the going QX, quarter, reflected and in for also excess in we be a you if our that, in and quarter

Omar Nokta

that termination maybe kind think medium-term? rolling that's I lease the end a you another shipowners year can amendment long-term then that ZIM maybe Perhaps we we of guess, the next general, And think of year, year? about this for we XX. this remaining early of are just think should remain charter Okay. I of value on and beyond Is XX, XX we charters these what write-down? here an as the guess, ships telegraphing the how -- about perhaps ships and to mentioned bit or for an see in off mismatch X look I in on approach between -- a is the means, the the before perhaps and just XX that next guess, balance the that beyond ships, additional but I or that sheets charter book then, or XX liability,

Xavier Destriau

vis-a-vis think needed to commitment I day, at run of end the end Look, that need at bit we vessel from the a a the what owner. test we the did our little with to of of disconnect -- the impairment the the purpose quarter overall we for the impact

We our early we honoring looking and vis-a-vis not of commitment from we are not going forward. vessels an charter which redelivering for committed the owner, are have hiding to are the potentially that, and potentially we employment at some

that looked in a still clearly we the we that as new to is once to profiling back critical in comes is charter. think all would operating the have it today the of mentioned, to and So are is tonnage, phase. going vessels us, When end that booked a to to impairment that will delivery ordered happening these decorrelation come existing taken up Eli be we I and at today.What cost-efficient is the I in of from say, this we've transition are tonnage going we XXXX, fleet are fuel-efficient XXXX, replace

So new their the the is terms come is period we X of up if that likely brand up year.So yes, ordered redelivery very redeliver that end vessels and was more renewal they vessels charter to now now one, efficient between we've we the between next in for year. the make end for perspective of room and for ZIM there as the ships of message, from all have that will the it

likely have be the vessels Xst is that very the of December end for majority of capacity would January XX vast We to of And another that XXXX. redelivery covered between redelivered. we've this 'XX it

Omar Nokta

it XQ. we on we on from, for of guess to fourth on of EBITDA general, in necessarily general, but share third revised I is be as is there, relative marginally, as a be or front? the surprise think here quarter you're XQ similar than about be worse? -- next It kind the look better sense. margin, then to to think about quarter, there's do one in one, quarter, margin range your say, we And the an say think that the the updated to XQ I just if guess, is wouldn't it. makes final Got I going Clearly, maybe the into guidance. on just like looks just to it to you XQ willing just Anything going perspective, just kind the

Xavier Destriau

see Look, and of the really our the think level for today and the of convey year, limited. as change industry. try little for today There in Scrapping very threat rates of for maybe into tonnage. outlook is that immediate also XXXX, that very idling to that low is the seen of We very will We've old to change I overcapacity don't many ahead catalysts very the limited. very is that remainder going retirement we is the very that clearly at looming Even little freight the in is us. are still challenging is future. sense

XXXX. therefore, better meaningfully future be view while, to of the here the the for recovery industry, the perception things a of to stay year XXXX have will clearly quarter, say until for The reducing including that's taking very a elapsed. the supply seems quarters, up maybe out excess the today, see turn optimism to coming has recover.So after the So and we years for the our hopefully in rates full should I we're us coming but cautious may that

large, pressure more for the will little our It's guide early in in that view we from guide under and for us to a obviously bit expect challenged detail market. a calls But severe the be few industry the future. for now. foreseeable We by XXXX will and

Operator

question from Sam next the of JPMorgan. line from comes Bland Your

Samuel Bland

X, please. I have

Does there's, but sort charter in there XX renewals. look said, you XX bring you low, today, tonnage them COVID-era are high with I that they're agreement -- maybe this obviously prices? forward? of XXXX? sort from I if those Obviously, can to base? How of you also And of rates is, whether the with sort the second is the similar we've at profitable at do mean XX, or know, spot got don't is rates anything to question. are you Are sort where ships of provider.And cost that question do you last the the that sort sort same on The something the newbuild characterize first one It's for newbuilds the the not more timing point are would cost guess, the year, of competitive. of or their XX current done of next. to quite

Xavier Destriau

So of to you're have in saying that your right we up in that first XXXX. come question, in terms vessels -- renewal for XX

close to as in of up come capacity potentially close XX, as will rate. XX to but that XX, And as have renewal higher We not XXXX terms for chartered could well. well those daily be characterized in

fill function rates in, that are our bringing it cover capacity second today question answer the because the is terms a also that's the will the year XXXX.When asked cost So end will you in to to much But by obviously. unwind that of redelivered to very do of XXXX. the to new in ships, the of subsequent continue vessels we a would already have we question in of the difficult XX combination ability

already do a the in where the filling capacity.To the because we if an sail a is I factor indication, ship satisfactory, a used So position think better we then are the much with -- better I new situation -- are give capacity in same lane, occasions, this TEU and TEU operate to trade the Coast illustration that cost U.S. will we the Asia a are replace. ships the on LNG that they couple but on come XX,XXX ship of East our now deploying gradually to it XX,XXX the in

or same less additional given the So same -- intake more voyage. at of we cost the get a XX% a

benefit from in, expect in it, the running that oil. effective today illustrates terms savings charter competitive But source of of heavy by on price. is get magnitude LNG, we which additional on the So is than those that even vessels come fuel, expect cost get fuel top of that of a at we to which them to more

Operator

from next Alexia of the line Your from Barclays. comes Dogani question

Alexia Dogani

as Yes. I three had well.

have on the It rough it's payments of currently to of I double-check the do depreciation as And us annualize your would you the want part can now. would you appreciate billion? number, the if mean, able is liquidity number be think cash for finally, at? company around costs agreements? 'XX rate the that. I around we firstly, in you Just of the these great the secondly, billion I think liquidity assume in And long-term think kind That just operate are I QX. and you be then though or balance 'XX can terms $X obviously, annual the helpful. run sheet. terms in mentioned down I What vessels in QX, $X minimum be if remind billion to of still in $X.X you Should charter the new we

Xavier Destriau

for you question. the Thank

your for the are the would some to stabilized difficult keeping, relation on clearly, question, in -- answer is longer the the what are question to yet. trades, clearly, we not transition And to the it's and that the of which is that minimum cash term. in So first is rates has phase, we want today, because unsustainable be a industry

to that We And sheet. But to clouds need amount the $XX worth the with our at position.With agreed sitting don't the take of per cautious industry So in we on very in want TEU ship payment our of for us for the will And vessels, our is on a today we navigate turmoil billion this to intend of horizon, think to $XXX to committed are payments the liquidity delivery I provide be to XXXX have here. remainder sure be million balance with down pay a balance we strong sheet. which when TEU we the we with think this making respect million. we the that case we down we of make wish $X mindful to I the make ship paying per current we XX,XXX for we right million stage. ships be X,XXX very have upfront and the deliveries of which XX $XX to that

earlier to close that having is the $XXX will impacted So payments impairment, forward XXXX, in be million.Depreciation I sorry, going million, precisely, $XXX of we been -- plus $XX upfront after mentioned as $XXX making made, going million by it's on. XXXX having in to be million

model that the situation effect be the would $XXX of excess guide impairment did So the that I a or quarter, of bit you had little fourth pre-impairment, million. the the in

that assume it we before the impairment, balance be a between year $XXX situation this lease quarter. third today be versus cash sheet liability is of of non-cash million result base. model, or impairment, a liability asset repayment, terms the that difference on reduced should impact in the of that lease in item without full as no for there year, should And above you and the overall registered payment So in being unchanged next of prior or our have slightly terms is as impairment the will impairment the after only fixed

Operator

from from comes the next Goldman Patrick line Your question Creuset of Sachs.

Patrick Creuset

quarter-on-quarter. It down looks quarter. just the to like managed payments, like limit with burn million they're we the as in And $XXX cash you somewhat start third the lease looks

how has the these you one-off some much and And the also quarterly related next I of of of redeliveries charter mean, million transferred below year, between effects redelivery in EBITDA? vessels what's maybe timing net-net new sort perhaps the in about do and some costs rate $XXX on understand from EBITDA with level sort above EBITDA How that. above to to just I charters driving quarter? third down the some it is of of these of run duration XX been mean, to this extension these payments, that, of trying from right is then I payments. what of think the much of from to flowing coming is that back vessels? Just remember

Xavier Destriau

in liability the it owner. in we some X lease quarter that's all third registered we the that every XXth terms effect look day, chartering in way And the of a explain. will of a or month. of right the at the timing changed vessel then impairment a below. isn't the today I Nothing month market, has of are of amortization.From you're there's works payments between still in the are been what if or lease Xst with the depreciation delayed. the weeks, The of or or what that effect the costs third and and cash the quarter, our above is are -- of today happened EBITDA a to of charter Note, reallocation our pay costs vessel again, payments So month XX% perspective, our the is are pushed banking the if the back repayment, made mainly Xst timing in the that our being being slightly liabilities in of cost vessel

QX. we compared So QX to run one less payment had in

the So payments X million we had versus of quarter. $XXX that X to prior contributed out less

flow So that's had cash the of our mainly we to [ the our this a ] balance also most just This capital driven also a effect.We are positive probably be the quarter is to third That sheet. one able receivable to is to one-off, lower our rates sell result from by in that on impact hopefully, contributed operation. increasing because of less customer. going working freight improvement, timing

Patrick Creuset

working you've there the follow-up I preempted Okay. question capital. my mean, on

see optimize capital. more that's sounds X think the don't you you the opportunities So like at [Indiscernible] to working months? Do

Xavier Destriau

I think and happy are at made the is leave I very receivables the value that due, mean, But good of are too progress level. the are not something of some which we've efforts a collection in we past here. very we that low terms about. fact less, aside

So our good. DSO quite is

pleased So that on we are front.

working continued in should is a not saying is there this environment capital unless a why deterioration I'm we improvement. of freight expect significant So the rate that

pretty are the we payment terms much have with On AP our base. maintaining supplier the we agreed side, that

Patrick Creuset

Canal higher it? give and you I maybe you a quick Panama rates. probably rerouting Can to slightly then operations get the last Got evolving mean, utilization, run see your you slightly how adapting how are be I any guess, one. and interesting. update just it. then on lower on how adapting situation color you And But you're

Xavier Destriau

evolving that true the a is day-after-day Panama is draft situation the on industry. being Canal imposed is and worrisome with that It limitation the

will evaluate ZXB this a which given new the we that ship in of to the imposed to suspended before actions of in that and that line, before service, back. also Asia been from the cargo us if some think past. our between quite to limitation also the we the weight cargo -- our U.S. utilization now this back I we and so mainly some we're was the maybe L.A., Panama and it that in monitoring services driving opportunity the Baltimore, we canal. also we're operate across that being East West see a of is the potential of the cross Latin This the trying the months an is we resume this linked. number rerouting the the the of the we redirected one successful reason Pacific reopening Coast, has So to through decisions the type ZEX or there company And America had Cost the why our And Canal service services on full East taking of Coast the made see are and alternative.Also, draft few we for go that as ZCP, the for Service, -- few, be here reasons situation Obviously, need are to a terms service maybe cargo feedering are we China optimize of is limitation South and are one to now do the to service.So vessel draft to carrying. of and day-after-day discharge the Panama Canal, utilize can run namely

Operator

the comes Barclays. of Your Dogani next from Alexia from question line

Alexia Dogani

How on the more 'XX? your think unit you just size size given fuel-efficient we then of par how the costs size question has can had gone with next about XXX quickly should vessels. do down of regain a levels? you fleet, at company XXXX the year. fleet for entering your I Obviously, the think the to And in vessels

Xavier Destriau

regards might With ship or coming the if you're it we operate replacing today. on from count, in to currently ships very operate at we as if size, look different smaller we that the what are fleet are average vessel. be will that vessel right, But anticipate the larger not we

should XXX,XXX And we the the give we today, or this take, closer of fleet. an end or of equivalent TEUs our we operate operate. XXX of So when near container of XXX,XXX that to by go vessels taken delivery mark TEU all capacity XXXX have the for

volume in of are way vessels our end us the So of and and clearly XX fuel for efficiency, that terms transitioning until savings. get look filling us we next when this need that clearly the towards to coming today is year, terms up allowing this capture important that energy we also the significant something into for those is XXXX is to vessels.In of the

get to moving if is get from to back back lot savings or also XXXX There determination we We will make. we the know. as are cost. a When will chartering you of parameters, get difficult a

extracting we in So focusing the we XXXX on early clearly, organization. we Today, is guidance will provide again in you more costs market whatever our doing, and address the are market when next year.

redeploying where our we service ZEX relate cost the capacity these obviously case. I vessels.It new that the more mentioned those the to line, to So taking new X we reopened, is new, us also relates the Us manage the efficient actions best think way trades with did ago also addressing announced MSC key cost Latin -- our them, of we've not that we, on to some so in with lanes. lines operation. partnering opening partnering long America the trade of lower by

our do #X and generating well respect. maximizing we volume. we optimizing company. the network workforce clearly productivity is well, priority year, to for with additional a then, need to that will next So as this as intend And stable savings capture in And therefore,

Operator

will the Glickman Eli over concludes the I turn back call session. Q&A to for remarks. closing now This

Eliyahu Glickman

ZIM. transition are for you. periods Thank XXXX XXXX and

have expect we taken a commercial to While positive to the these we operation deliberate deliver on times, outcomes. our enhance challenging are steps resilience

committed and immediate believe fleet total downturn. growth.In we -- are position remain this interest to trades. and cash $X.X commercial We a and for Our generate improve is us your ever, shareholders.Thank position Strong our that opportunities serve cost to long-term highlighted technology strategy few operational maintain competitive weather value further core provide a advantage and best leveraging us ZIM. all initiatives drive sustainable stronger than our us excellence, best stays commercial a will Hope fuel long-term trend, our profitable key and view and promote to and today differentiated of the in that renewal while implementing new Thank emerge you. in program joining customers a cost will will billion you digitalization and everyone well by positioned cost to safe. control ZIM efficiency to pursuing structure for

Operator

participation. for This your now concludes Thank conference And you you disconnect. today's call. may

ZIM Integrated Shipping Services (ZIM) 15 Nov 232023 Q3 Earnings call transcript