Israeli shipping company ZIM, listed on the New York Stock Exchange, informed analysts while releasing its third-quarter financial report this week that the company sees an increasing likelihood of returning to the Red Sea and is awaiting insurance company approval to return to the Red Sea.
Such statements have shocked other container liner companies, leaving them wondering if ZIM has insider information, as most shipping companies dare not confirm that the Houthi rebels have truly stopped fighting.
When ZIM President Eli Glickman was asked by analysts in the company’s third-quarter earnings report about returning to the Red Sea and potentially increasing its market share in the Asia-Europe trade, he said: “The answer is yes. Actually, we are waiting for the insurance companies to approve our return to the Red Sea, the Suez Canal, the Bab el-Mandeb Strait, and we look forward to conducting trade via the shorter route as soon as possible, compared to the Cape of Good Hope.”
In November 2023, when the Houthi rebels began attacking ships linked to Israel in the Red Sea in response to the Gaza war between Israel and Hamas, ZIM was one of the first shipping companies to divert via the Cape of Good Hope.
ZIM President Eli Glickman stated on the call that while the current ceasefire in the Gaza Strip is encouraging, further assurance of its durability is needed, and the company is closely monitoring this. He said: “That being said, we believe it now appears increasingly likely that a return to the Suez Canal will occur in the near future.”
He also pointed out that, from a commercial perspective, returning to the Suez route means opportunities for improving fleet efficiency and cost savings, but it also carries the risk of increasing effective fleet supply and further depressing freight rates. The market estimates that avoiding the detour around the Cape of Good Hope would release 5-10% of shipping capacity.
ZIM’s net profit for the third quarter of this year was $123 million, compared to $1.13 billion in the same period last year, a year-on-year plunge of nearly 90%. Revenue for the third quarter of 2025 was $1.78 billion, down 36%, almost entirely consistent with the 35% drop in average revenue per TEU to $1,602.
