Zim Integrated Shipping Services
Encyclopedia
Zim Integrated Shipping Services Ltd. , formerly ZIM Israel Navigation Company Ltd. and Zim American Israeli Shipping Inc., is the biggest cargo shipping
company in Israel
, and 10th largest in the world. The company's North American headquarters are based in Norfolk, Virginia
.
(General Federation of Laborers in the Land of Israel). The first ship was purchased in partnership with Harris and Dixon (based in London
) in 1947. This vessel was refurbished, renamed , and sailed to the future state of Israel in the summer of 1947. During her first years, her main task was transporting hundreds of thousands of immigrants to the emerging state. Some of the other ships that had been used for clandestine immigration before the establishment of Israel as a state were confiscated by the British
mandate authorities and later joined the company's fleet. The company continued to purchase more ships, among them , and .
During the 1948 war, the company was the sole maritime connection with the state of Israel, supplying food, freight and military equipment.
In 1953, some of the money from the reparations agreement between Israel and West Germany
was allocated to the purchase of 36 new ships, a massive expansion of ZIM's fleet.
The 1950s and 1960s saw ZIM concentrate on passenger ships, alongside a constant expansion of the cargo shipping business. Passenger liners were a common means of international transport before the emergence of cheap air transport, and pleasure cruises were also popular. ZIM sailed the Mediterranean Sea
, as well as having regular routes to the United States
. Some of its ships cruised to the Caribbean during the winter. 1964 saw the completion of the ocean liner
, which turned out to be a failure, marking the end of the ZIM passenger shipping era.
During the 1960s ZIM started to turn its focus to cargo ships, and obtained several special-purpose vessels, including refrigerated shipping, and oil tankers. ZIM transported crude oil from Iran
to Israel, and oil byproducts from Israel to Europe.
shipping business. ZIM ordered 6 such ships, and gradually made this its main line of business.
In 1981 one of the company's ships, Mezada, was lost at sea and at the same time, ZIM was suffering, alongside other shipping companies, from the lull in maritime shipping at the beginning of the 1980s, but it recovered, and during the 1990s had 15 more ships built in Germany
. At this time, the ownership of ZIM was divided between the Israeli government and Israel Corporation
.
(which is controlled by the Ofer Brothers Group
) purchased 49% of Zim's shares held by the Israeli government, becoming the sole owner of the company. The new official name after privatization became Zim Integrated Shipping Services. The purchase deal for about five hundred million New Israeli Shekels was severely criticized by the press and the State Comptroller of Israel as being undervalued and becoming just another flag of convenience company. In 2007, ZIm Sold its maritime logistics and forwarding services subsidiary NewLog to UTi Worldwide.
and selling 25% of its shares on the Hong Kong Stock Exchange
, but due to the onset of the global economic crisis it was called off. In 2009, ZIM required a cash injunction of $450 by the Ofer family and debt restructuring following the world's container shipping downturn.
In 2010, ZIM returned to profitability and in early 2011 ZIM renewed its plans for a flotation on the Hong Kong Stock Exchange
, but again had to postpone it due to the economic downturn and the drop in container shipping rates.
Shipping
Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
company in Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
, and 10th largest in the world. The company's North American headquarters are based in Norfolk, Virginia
Norfolk, Virginia
Norfolk is an independent city in the Commonwealth of Virginia in the United States. With a population of 242,803 as of the 2010 Census, it is Virginia's second-largest city behind neighboring Virginia Beach....
.
History
ZIM was founded in 1945, by the Jewish Agency and the HistadrutHistadrut
HaHistadrut HaKlalit shel HaOvdim B'Eretz Yisrael , known as the Histadrut, is Israel's organization of trade unions. Established in December 1920 during the British Mandate for Palestine, it became one of the most powerful institutions of the State of Israel.-History:The Histadrut was founded in...
(General Federation of Laborers in the Land of Israel). The first ship was purchased in partnership with Harris and Dixon (based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
) in 1947. This vessel was refurbished, renamed , and sailed to the future state of Israel in the summer of 1947. During her first years, her main task was transporting hundreds of thousands of immigrants to the emerging state. Some of the other ships that had been used for clandestine immigration before the establishment of Israel as a state were confiscated by the British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
mandate authorities and later joined the company's fleet. The company continued to purchase more ships, among them , and .
During the 1948 war, the company was the sole maritime connection with the state of Israel, supplying food, freight and military equipment.
In 1953, some of the money from the reparations agreement between Israel and West Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
was allocated to the purchase of 36 new ships, a massive expansion of ZIM's fleet.
The 1950s and 1960s saw ZIM concentrate on passenger ships, alongside a constant expansion of the cargo shipping business. Passenger liners were a common means of international transport before the emergence of cheap air transport, and pleasure cruises were also popular. ZIM sailed the Mediterranean Sea
Mediterranean Sea
The Mediterranean Sea is a sea connected to the Atlantic Ocean surrounded by the Mediterranean region and almost completely enclosed by land: on the north by Anatolia and Europe, on the south by North Africa, and on the east by the Levant...
, as well as having regular routes to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Some of its ships cruised to the Caribbean during the winter. 1964 saw the completion of the ocean liner
Ocean liner
An ocean liner is a ship designed to transport people from one seaport to another along regular long-distance maritime routes according to a schedule. Liners may also carry cargo or mail, and may sometimes be used for other purposes .Cargo vessels running to a schedule are sometimes referred to as...
, which turned out to be a failure, marking the end of the ZIM passenger shipping era.
During the 1960s ZIM started to turn its focus to cargo ships, and obtained several special-purpose vessels, including refrigerated shipping, and oil tankers. ZIM transported crude oil from Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
to Israel, and oil byproducts from Israel to Europe.
Focusing on container shipping
The 1970s saw ZIM expanding into the containerContainerization
Containerization is a system of freight transport based on a range of steel intermodal containers...
shipping business. ZIM ordered 6 such ships, and gradually made this its main line of business.
In 1981 one of the company's ships, Mezada, was lost at sea and at the same time, ZIM was suffering, alongside other shipping companies, from the lull in maritime shipping at the beginning of the 1980s, but it recovered, and during the 1990s had 15 more ships built in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. At this time, the ownership of ZIM was divided between the Israeli government and Israel Corporation
Israel Corporation
Israel Corporation is Israel’s largest holding company. Fifty of its manufacturing activities and 70% of its consolidated revenues derive from global operations. Its core holdings are fertilizers and specialty chemicals, energy, shipping and transportation. Israel Corp is a constituent of the...
.
Privatization
In 2004, ZIM the Israel CorporationIsrael Corporation
Israel Corporation is Israel’s largest holding company. Fifty of its manufacturing activities and 70% of its consolidated revenues derive from global operations. Its core holdings are fertilizers and specialty chemicals, energy, shipping and transportation. Israel Corp is a constituent of the...
(which is controlled by the Ofer Brothers Group
Ofer Brothers Group
The Ofer Group is an Israeli family shipping business owned by the Ofer family. The Ofer family owns one of the largest private shipping companies in the world....
) purchased 49% of Zim's shares held by the Israeli government, becoming the sole owner of the company. The new official name after privatization became Zim Integrated Shipping Services. The purchase deal for about five hundred million New Israeli Shekels was severely criticized by the press and the State Comptroller of Israel as being undervalued and becoming just another flag of convenience company. In 2007, ZIm Sold its maritime logistics and forwarding services subsidiary NewLog to UTi Worldwide.
Planned flotation
In 2008, ZIM planed to launch an initial public offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
and selling 25% of its shares on the Hong Kong Stock Exchange
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
, but due to the onset of the global economic crisis it was called off. In 2009, ZIM required a cash injunction of $450 by the Ofer family and debt restructuring following the world's container shipping downturn.
In 2010, ZIM returned to profitability and in early 2011 ZIM renewed its plans for a flotation on the Hong Kong Stock Exchange
Hong Kong Stock Exchange
The Hong Kong Stock Exchange is a stock exchange located in Hong Kong. It is Asia's third largest stock exchange in terms of market capitalization behind the Tokyo Stock Exchange and the Shanghai Stock Exchange and fifth largest in the world...
, but again had to postpone it due to the economic downturn and the drop in container shipping rates.
Operational Statistics
ZIM's operational statistics for 2010:- TEU'sTwenty-foot equivalent unitThe twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals...
Carried - over 2.2 million - Total TEUTwenty-foot equivalent unitThe twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals...
Capacity (owned and chartered ships) - ~363,000 TEUs - Fleet - About 100 vessels, 29 fully or partly owned
- Containers - over 600,000 TEUTwenty-foot equivalent unitThe twenty-foot equivalent unit is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals...
s of various types - Regional headquarters: HaifaHaifaHaifa is the largest city in northern Israel, and the third-largest city in the country, with a population of over 268,000. Another 300,000 people live in towns directly adjacent to the city including the cities of the Krayot, as well as, Tirat Carmel, Daliyat al-Karmel and Nesher...
(Israel), Norfolk, VirginiaNorfolk, VirginiaNorfolk is an independent city in the Commonwealth of Virginia in the United States. With a population of 242,803 as of the 2010 Census, it is Virginia's second-largest city behind neighboring Virginia Beach....
(USA), HamburgHamburg-History:The first historic name for the city was, according to Claudius Ptolemy's reports, Treva.But the city takes its modern name, Hamburg, from the first permanent building on the site, a castle whose construction was ordered by the Emperor Charlemagne in AD 808...
(Germany), Hong KongHong KongHong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour... - Ports of Call: 180 throughout the world
See also
- Israel CorporationIsrael CorporationIsrael Corporation is Israel’s largest holding company. Fifty of its manufacturing activities and 70% of its consolidated revenues derive from global operations. Its core holdings are fertilizers and specialty chemicals, energy, shipping and transportation. Israel Corp is a constituent of the...
- Zodiac Maritime Agencies
- Ofer Brothers GroupOfer Brothers GroupThe Ofer Group is an Israeli family shipping business owned by the Ofer family. The Ofer family owns one of the largest private shipping companies in the world....
- Edmond Wilhelm BrillantEdmond Wilhelm BrillantEdmond Wilhelm Brillant the Levi was a naval architect, Hagana member, among the founding fathers of the Israeli navy and was in the ZIM Navigation company the Israeli Merchant Marine. He dedicated his best years for the Navy buildup...