Does ZIM Integrated Shipping Management Knows Something The Market Doesn’t?

  • The pandemic boom produced a cash flow bonanza that enabled the ZIM, a nimble container shipper, to deleverage and pay outsized dividends.
  • However, with spot rates now collapsing in the face of higher interest rates and a declining world economic outlook, the party seems all but over.
  • However, management was surprisingly upbeat during its Q2CC, reaffirming its FY22 outlook and it’s even increasing its dividend payout ratio.
  • How much they can absorb the collapsing spot rates with the help of their nimbleness and the existence of longer-term contracts remains very much to be seen.
  • So while we like the company and despite the dividend hype, we would advise you not to get onboard at this point as spot container rates can fall much more.
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Does ZIM Management Knows Something The Market Doesn’t?