Israeli shipping firm Zim has denied a story in the Wall Street Journal that it is seeking to sell off most of its global shipping operations. In a statement, a spokesperson for the firm said that “Zim is rejecting the rumor that it has intentions to sell its global shipping operations.We have been a global player for the past few decades and we have no intentions whatsoever to stop [providing] world-wide services to clients,” the report said.
The report quoted individuals “with direct knowledge of the matter” as saying that the company was seeking to spin off its routes from Asia to the U.S. and from the Middle East to both destinations. The company would retain its routes in the Mediterranean.
Zim, considered a small carrier by world standards, is said to be worth $267 million, according to industry estimates. However, analysts quoted in the report said that if the company was for sale, only seven of the line’s 19 ships would attract attention from buyers, as they are large enough to carry the large amounts of cargo that shippers are looking for. The other ships are considered outmoded, because they are smaller.
Zim, like other carriers, has been hard-hit by a slump in the shipping industry, where excess capacity has pushed prices down to the point where they are barely covering fuel costs, the report added.