Subject: Re: ZIM
@DTB
My mistake for not pointing it out. But, the questions were primarily for the the thread OP.

--

The OP answering the questions would have helped find the negative he is seeking.
But since the questions ended up being open-ended, I guess I should provide some answers.

#1. Unlike other sectors in shipping, the container shipping sector is more than just getting the product i.e. containers, from port A (source) to port B (destination). There are sometimes added elements on either end e.g. delivery of empty containers to a factory or warehouse for loading. Or getting the container from port B to the actual final destination. For ZIM, it is actually in its name - ZIM Integrated Shipping.
DAC is just an owner of a fleet of container vessels, and its main objective is to make sure its vessels are working/chartered.
I like to picture the container shipping sector as having a tiered structure.
Tier 1: Liner companies - Maersk, CMA CGM, MSC, ONE, ZIM (on the smaller end of liner companies)
Tier 2: Containership leasing entities - Own container vessels, but don't have the resources to scale up the first tier. The companies just focus on chartering their vessels to one or more Tier 1 companies
Tier 3: Small containership owners - own container vessels, and rent out their vessels on a per voyage basis, or indexed basis.
ZIM as a liner company takes on the responsibility of managing vessels, fueling vessels, (indirectly) operating the vessel (usually the vessel crew is paid by the owner via the charterer). See how the risks are adding up for ZIM now?

#2. Big liner companies usually have standard routes they sail on a periodic basis. Four or five ports in Asia to load cargo, then book it to Europe (or North America) and deliver cargo at one or two locations. This is in contrast to spot voyages (more unpredictable in nature). ZIM mgmt were a lot more guarded on the % of spot business they had. My understanding is that ZIM's spot cargo is higher than most liner companies.

#3. Container was on a upswing most of 2021. The following year, 2022, market continued to be tight and the spot rates continued higher ... until July/Aug 2022. Then spot rates collapsed. Is this a problem for ZIM? That's why I asked the second question? The reality is the market has pummeled the share price of other publicly traded liner companies (Maersk, Hapag Lloyd) also. Just not as hard as ZIM's price.

Is ZIM's cash position a good one? Yes. But ZIM has above-average charter obligations as a majority of their vessels are leased (not owned). With weakening container demand, container vessel asset values will likely start declining. The ZIM asset-light model might be an advantage in that situation.

Is this better for understanding at least some of ZIM's price plunge?