Sources inform ''Globes'' that Zim Integrated Shipping Services Ltd. will mothball a substantial part of its fleet as part of its streamlining measures to cope with the severe crisis in the shipping industry. The measure will result in hundreds of layoffs, and Zim's management is negotiating with the workers committee and Histadrut (General Federation of Labor in Israel) on the numbers.
Shipping industry sources believe that Zim will mothball 30-40% of ships on its Israeli routes and a similar proportion on its international routes. The company currently operates 22 ships on its Israeli routes, and the number will be reduced to 12-15.
Zim will expand its collaboration with foreign shippers that operate routes to Israel, including Swiss firm Mediterranean Shipping Company SA (MSC) and China Shipping Container Liners Co. Ltd. (HKSE:2866; Shanghai: CN). Zim recently signed a cooperation agreement with MSC for carrying Israeli agricultural produce to Europe.
Zim currently has a fleet of 100 ships. As "Globes" reported, it has taken 20 ships out of service since the start of the crisis as shipping demand plummeted.
Zim is a wholly owned subsidiary of Israel Corporation (TASE: ILCO), controlled by Ofer Holdings Group.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009