ZIM’s position as an independent carrier is entering a critical six-month window. The potential sale of the company faces several complications. Its Israeli ownership adds geo-political hurdles, and its valuation remains a major issue. The carrier’s market capitalization sits at $2.4 billion, which is lower than its cash value of $2.9 billion.
Freight Rates and Market Imbalance
Freight rates continued to slip in early December. Carriers tried to push through planned GRIs, but these increases did not take hold. At the same time, operators must decide whether to make an early return to the Suez route.
However, the broader trend remains unchanged. TEU-mile demand continues to lag behind supply growth. A multi-year oversupply risk is developing as carriers keep expanding their fleets. This expansion has pushed the global orderbook to a new record of 11.5 million TEU, with 4.5 million TEU due for delivery in 2028 alone.
Strategic Review and Acquisition Interest
ZIM shareholders will meet on 19 December 2025 to elect board members who will guide the company through its strategic review. The review includes identifying potential buyers.
Several parties have already expressed interest. One proposal comes from the company’s CEO, Eli Glickman, working with roro shipowner Rami Ungar. Hapag-Lloyd has also submitted a bid. In addition, MSC and Maersk have signalled interest in the sale discussions.
Union Reaction and Ownership Sensitivities
ZIM’s workers’ union opposes Hapag-Lloyd’s offer. The concern centres on stakes held by Qatar (12.3 per cent) and Saudi Arabia (10.2 per cent) in Hapag-Lloyd, with the union citing national-security risks.
The Israeli government holds a golden share in ZIM, which requires the company to provide part of its fleet when needed. Even if a deal proceeds, Hapag-Lloyd would remain the fifth-largest carrier. Yet it would narrow the distance between its position and the top four carriers.
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Source: Linerlytica
