Zim, the Israeli shipping line, has announced a general freight increase of $200 for a TEU from February 1 on westbound cargo from India to North Europe and the Mediterranean, according to shipping industry sources.
The move follows similar announcements by several other carriers serving the same route – a $200/TEU increase by Hapag Lloyd from February 1, a $200/TEU increase from January 23 by the Mediterranean Shipping Company and a $100/TEU increase by UASC, the sources point out.
debt status
It might be noted Zim's finances of late have come under scrutiny as investors grow anxious after the Israeli carrier failed to meet a December deadline to obtain waivers on financial covenants on its debt.
As a result, affected debt of about $2 billion on Zim's balance sheet will be listed in its 2011 financial report as short-term debt, instead of long-term debt.
Zim's total debt stood at $2.59 billion as of the end of September 2011.
It is estimated that the carrier will post a net loss of more than $300 million in its 2011 financial year.
For the first nine months of 2011, it posted a net loss of $238 million, add sources.
Meanwhile, CMA CGM, France's number one and the world's number three container shipping line, is believed to be considering to slap from February 1 a congestion surcharge of $100/TEU at Dar es Salaam on its SWAX service between India, West Asia and East Africa.
The port rotation of SWAX service is Nhava Sheva -Jebel Ali-Khor Fakkan-Mombasa-Zanzibar-Dar es Salaam and back to Nhava Sheva.
Keywords: Zim, Israeli, shipping line, freight increase, westbound cargo
