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ZIM Integrated: Ceasefire Problem

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Update - Mar.7, 2025

A CEO led deal right now makes no sense with shipping rates set to collapse and the Drewry World Container Index already down to $2,541.

-ZIM Integrated Shipping (NYSE: ZIM) +7% - Shares soared amid takeover speculation, following reports that CEO Eli Glickman is exploring a management-led buyout of the Israel-based shipping firm. According to a StreetInsider report citing an unidentified source, Glickman is working with advisers on a potential bid, though it remains unclear whether his efforts will materialize or if the board will be receptive. The company is set to report its Q4 earnings on Wednesday.


Original article posted on January 21.  

  • ZIM Integrated Shipping Services Ltd. faces a bearish outlook due to the expected collapse in shipping rates following the end of the Red Sea disruption on a Hamas/Israel ceasefire.
  • The container shipping market faces a potential 25% tonnage oversupply and an 11% drop in TEU-mile demand by the sector returning to the Suez Canal.
  • ZIM's increased capacity and shift to spot rate contracts will hurt profitability as shipping rates decline, despite recent strong performance and dividend payouts.
  • Investors should consider unloading their ZIM stock, anticipating weak results and a retest of 2023 lows due to aggressive capacity additions and market oversupply.
  • Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More »
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) rallied the last year due to the Red Sea attacks that should end with the ceasefire between Hamas and Israel. The stock has already fallen below support at $18 and any break of further support at $16 will lead to the stock likely trading back towards $10. My investment thesis remains ultra-Bearish on the stock, as the reopening of the Red Sea shipping route will crush shipping rates and lead the sector back to a massive over supply scenario.


Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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