One of the Israeli companies most exposed to the risks entailed in the global trade war is ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), which ships goods in containers and operates a significant number of US-China routes.
ZIM’s share price fell 16.4% on Wall Street on Thursday and a further 7.2% on Friday, closing with a market cap of $1.5 billion, wiping out all its gains in 2025.
RELATED ARTICLES
Kenon sells remaining ZIM stake
Management buyout rumor boosts ZIM
ZIM jumps sharply after raising guidance
Speaking to “Globes” about the possible impact of trade tariffs after the shipping company published its 2024 financial results last month, ZIM CEO Eli Glickman said, “These are very serious external influences that could shake up the shipping market, and they are beyond our control. In terms of macroeconomics, raising tariffs could increase inflation, decrease demand, and significantly harm global trade, and that’s before we even talk about retaliatory measures.” At the same time, he mentioned another factor that could negatively affect the company – a planned policy in the US to impose a tax of $ 1.5 million for each visit to a US port by a ship manufactured in China.
ZIM has been a volatile stock – the company held its IPO on the New York Stock Exchange in 2021, at a valuation of $ 1.5 billion, reached a peak of $10 billion during the Covid pandemic, and slumped to a low of less than $1 billion in 2023. 2024 was positive for the company, because of the threats of the Houthis and the closure of the passage through the Bab al-Mandeb Strait and the Suez Canal, which forced shipping companies to circumnavigate Africa.
The longer routes led to a fall in the supply of ships and containers, and a rise in maritime transport prices, which was reflected in the company’s strong reports in 2024. ZIM recorded 63.3% growth in revenue last year to $ 8.4 billion, moving from a loss to a net profit of $2.15 billion and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.7 billion. The company’s largest shareholder, Idan Ofer’s Kenon (NYSE: KEN; TASE: KEN), took advantage of the stock’s surge and sold its remaining holdings in ZIM at a large profit – in what seems, in retrospect, to be particularly good timing, before the sharp declines.
Published by Globes, Israel business news – en.globes.co.il – on April 6, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
