Israeli flag carrier Zim has decided to exit from the Asia-North Europe trade because it lacks the mega ships it needs to participate, but is determined to ply Asia-South America routes with greater vigour, according to Shipping Gazette.
Zim CEO Rafi Danieli said he intended to expand coverage. "South America is one of the trades we are going to concentrate on, we are even looking at how to extend services there," he said.
Said Zim vice president Nissim Yochai: "In fact, we are thinking of adding another vessel to our line from South America to the Far East.
But for now, Zim's Asia-Europe's plans are at an end. "This is a trade where there is an obvious advantage for the bigger vessels," said Mr Yochai, noting that the carrier's biggest ships are in the 10,062-TEU range.
"Given our financial situation at this stage, and the size of our vessels, we don't think we can add any value to that trade for our customers and therefore the simple conclusion was to withdraw from the trade," Mr Yochai said.
"We don't have the 14,000-TEU to 18,000-TEU vessels that will allow us to compete on even terms with the big guys," he said.
Zim offered services on the trade as a vessel provider on a joint service with China Shipping Container Lines (CSCL) until the end of April. But then CSCL decided to go it alone.
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