The container liner company ZIM Integrated Shipping Services expects now to generate an adjusted Ebitda of $1.2 billion to $1.6 billion and adjusted Ebit loss of $500 million to $100 million.

The company gave an updated 2023-guidance and said the second quarter results are broadly in-line with its expectations.

The Israel-based shipping line, in the update, also reported its prior guidance of adjusted Ebitda of between $1.8-$2.2 billion and adjusted positive Ebit of between $100-$500 million.

ZIM´s President and CEO Eli Glickman no longer anticipates an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed.

“Near-term container shipping market conditions continue to be challenging, with demand expected to remain muted for the remainder of the year,” he said.

The updated full-year 2023 guidance is driven primarily by continued weakness in freight rates across all the company’s trades, as the company reveals, particularly in the transpacific which is now expected to continue during the second half of 2023.

Zim also expects volume growth to be lower than originally forecasted, as demand continues to be subdued.

ZIM´s President Glickman added that “During this downturn, we will continue to actively manage and rationalize our fleet and services, to maximize our cash position, while remaining true to our customer-centric approach, a hallmark of ZIM’s success.”

As he said: “We expect our strong balance sheet and ample cash to continue serving ZIM well and allow us to maintain a long-term view. As we look to the future, we believe that our cost-effective and fuel-efficient newbuild capacity, particularly our newbuild LNG vessels, will markedly improve our cost structure and competitive position, allowing us to deliver sustainable value for both customers and shareholders over the long term.”