ZIM Integrated Shipping Services Ltd. Files 20-F Annual Report

TL;DR

<b>ZIM Integrated Shipping Services Ltd. filed its 20-F annual report detailing financial risks and operational expenses for the fiscal year 2023.</b>

AI Summary

ZIM Integrated Shipping Services Ltd. (ZIM) filed a Foreign Annual Report (20-F) with the SEC on March 13, 2024. The filing is a 20-F annual report for ZIM Integrated Shipping Services Ltd. for the fiscal year ending December 31, 2023. The report details the company's financial exposure to credit, currency, interest rate, and fair value risks. Lease liabilities payments amounted to US$38 million in 2023 and US$64 million in 2022. An impairment loss of US$28.5 million was included in Other operating expenses. The report references various charter agreements with entities including Seaspan, Shipping Company, Navios Maritime Partners, MPC Container Ships ASA, and Shell NA LNG LLC.

Why It Matters

For investors and stakeholders tracking ZIM Integrated Shipping Services Ltd., this filing contains several important signals. This 20-F filing provides a comprehensive overview of ZIM's financial health and operational activities, crucial for investors assessing the company's performance and future outlook. Understanding the company's exposure to various financial risks and specific expense items like impairment losses is key to evaluating its stability and profitability in the volatile shipping industry.

Risk Assessment

Risk Level: medium — ZIM Integrated Shipping Services Ltd. shows moderate risk based on this filing. The company operates in the highly cyclical and competitive shipping industry, which is subject to significant fluctuations in freight rates, fuel costs, and geopolitical events, as evidenced by the various charter agreements and financial risk disclosures.

Analyst Insight

Investors should review the detailed financial statements and risk factor disclosures within the 20-F to understand ZIM's exposure to market volatility and operational challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-13 — Filing Date (Date the 20-F was filed)
• US$ 38 million — Lease Payments (Principal and interest paid in 2023)
• US$ 64 million — Lease Payments (Principal and interest paid in 2022)
• US$ 28.5 million — Impairment Loss (Included in Other operating expenses)

Key Players & Entities

• ZIM Integrated Shipping Services Ltd. (company) — Filer name
• Seaspan (company) — Mentioned in relation to charter agreements
• Shipping Company (company) — Mentioned in relation to charter agreements
• Navios Maritime Partners (company) — Mentioned in relation to charter agreements
• MPC Container Ships ASA (company) — Mentioned in relation to charter agreements
• Shell NA LNG LLC (company) — Mentioned in relation to charter agreements
• US$ 38 million (dollar_amount) — Lease liabilities paid in 2023
• US$ 64 million (dollar_amount) — Lease liabilities paid in 2022

FAQ

Risk Factors

• Exposure to Credit, Currency, Interest Rate and Fair Value Risks [medium — financial]: The Group's exposure to credit, currency, interest rate, and fair value risks related to investments is detailed in Note 29.
• Impairment Loss [medium — operational]: An impairment loss of US$28.5 million was included in Other operating expenses.
• Lease Liabilities [low — financial]: The Group paid US$38 million and US$64 million in principal and interest for lease liabilities in 2023 and 2022, respectively.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 20-F filing.

Filing Documents

• zk2431081.htm (20-F) — 4752KB
• exhibit_2-1.htm (EX-2.1) — 31KB
• exhibit_4-11.htm (EX-4.11) — 149KB
• exhibit_8-1.htm (EX-8.1) — 133KB
• exhibit_12-1.htm (EX-12.1) — 12KB
• exhibit_12-2.htm (EX-12.2) — 12KB
• exhibit_13-1.htm (EX-13.1) — 5KB
• exhibit_13-2.htm (EX-13.2) — 5KB
• exhibit_15-1.htm (EX-15.1) — 3KB
• exhibit_15-2.htm (EX-15.2) — 3KB
• image00002.jpg (GRAPHIC) — 44KB
• 0001178913-24-000920.txt (&nbsp;) — 20454KB
• zim-20231231.xsd (EX-101.SCH) — 142KB
• zim-20231231_cal.xml (EX-101.CAL) — 105KB
• zim-20231231_def.xml (EX-101.DEF) — 356KB
• zim-20231231_lab.xml (EX-101.LAB) — 1330KB
• zim-20231231_pre.xml (EX-101.PRE) — 611KB
• zk2431081_htm.xml (XML) — 4938KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ZIM INTEGRATED SHIPPING SERVICES LTD. TABLE OF CONTENTS Page INTRODUCTION AND USE OF CERTAIN TERMS 1 PRESENTATION OF FINANCIAL AND OTHER INFORMATION 6

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS 7 PART I 8

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS 8 A. Directors and senior management 8 B. Advisers 8 C. Auditors 8

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 8 A. Offer statistics 8 B. Method and expected timetable 8

KEY INFORMATION

ITEM 3. KEY INFORMATION 8 A.

Selected financial data

Selected financial data 8 B. Capitalization and indebtedness 8 C. Reasons for the offer and use of proceeds 8 D.

INFORMATION ON THE COMPANY

ITEM 4. INFORMATION ON THE COMPANY 35 A. History and development of the company 35 B. Business Overview 36 C. Organizational structure 64 D. Property, plant and equipment 64

UNRESOLVED STAFF COMMENTS

ITEM 4A. UNRESOLVED STAFF COMMENTS 64

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS 64

DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 79 A. Directors and senior management 79 B. Compensation 82 C. Board practices 83 D. Employees 91 E. Share ownership 91

MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS 93 A. Major shareholders 93 B. Related party transactions 94 C. Interests of Experts and Counsel 102

FINANCIAL INFORMATION

ITEM 8. FINANCIAL INFORMATION 102 A. Consolidated statements and other financial information 102 B. Significant changes 103

THE OFFER AND LISTING

ITEM 9. THE OFFER AND LISTING 103 A. Offering and listing details 103 B. Plan of distribution 103 C. Markets 103 D. Selling shareholders 103 E.

Dilution

Dilution 103 F. Expenses of the issue 103

ADDITIONAL INFORMATION

ITEM 10. ADDITIONAL INFORMATION 103 A. Share capital 103 B. Memorandum of association and bye-laws 104 C. Material contracts 104 D. Exchange controls 104 E. Taxation 104 F. Dividends and paying agents 109 G 109 H. Documents on display 109 I. Subsidiary information 109

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 109

DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES 109 A. Debt securities 109 B. Warrants and rights 109 C. Other securities 109 D. American Depositary Shares 109 PART II 110

DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES 110 A. Defaults 110 B. Arrears and delinquencies 110

MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS 110

CONTROLS AND PROCEDURES

ITEM 15. CONTROLS AND PROCEDURES 110 A. Disclosure Controls and Procedures 110 B. Management's Annual Report on Internal Control over Financial Reporting 110 C. Attestation Report of the Registered Public Accounting Firm 111 D. Changes in Internal Control over Financial Reporting 111

RESERVED

ITEM 16. RESERVED 111

Audit committee financial expert

ITEM 16A. Audit committee financial expert 111

Code of Conduct

ITEM 16B. Code of Conduct 111

Principal Accountant Fees and Services

ITEM 16C. Principal Accountant Fees and Services 112

Exemptions from the listing standards for audit committees

ITEM 16D. Exemptions from the listing standards for audit committees 112

Purchases of equity securities by the issuer and affiliated purchasers

ITEM 16E. Purchases of equity securities by the issuer and affiliated purchasers 112

Change in registrant's certifying accountant

ITEM 16F. Change in registrant's certifying accountant 112

Corporate governance

ITEM 16G. Corporate governance 112

Mine safety disclosure

ITEM 16H. Mine safety disclosure 113 PART III 114

Financial statements

ITEM 17. Financial statements 114

Financial statements

ITEM 18. Financial statements 114

Exhibits

ITEM 19. Exhibits 114 Index to Consolidated Financial Statements F-1 INTRODUCTION AND USE OF CERTAIN TERMS We have prepared this Annual Report using a number of conventions, which you should consider when reading the information contained herein. In this Annual Report, the "Company," "we," "us" and "our" shall refer to ZIM Integrated Shipping Services Ltd., or ZIM. The following are definitions of certain terms that are commonly used in the shipping industry and in this Annual Report. "alliance" A type of a vessel sharing agreement that involves joint operations of fleets of vessels and sharing of vessel space in multiple trades. "bareboat charter" A form of charter where the vessel owner supplies only the vessel, while the charterer is responsible for crewing the vessel, obtaining insurance on the vessel, the auxiliary vessel equipment, supplies, maintenance and the operation and management of the vessel, including all costs of operation. The charterer has possession and control of the vessel during a predetermined period and pays the vessel owner charter hire during that time. "bill of lading" A document issued by or on behalf of a carrier as evidence of a contract carriage and is usually considered as a document of title (transferable by endorsement) and as receipt by the carrier for the goods shipped and carried. The document contains information relating to the nature and quantity of goods, their apparent condition, the shipper, the consignee, the ports of loading and discharge, the name of the carrying vessel and terms and conditions of carriage. A house bill of lading is a document issued by a freight forwarder or non-vessel operating common carrier that acknowledges receipt of goods that are to be shipped and is issued once the goods have been received. "blank sailing" A scheduled sailing that has been cancelled by a carrier or shipping line resulting in a vessel skipping certain ports or the entire route. "booking" Prior written request o

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS We make forward-looking statements in this Annual Report that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential," or the negative of these terms or other similar expressions. Forward-looking statements include, but are not limited to, such matters as: our expectations regarding general market conditions, including as a result of global trends and geopolitical events and developments such as, but not limited to, the Houthi attacks against vessels in the Red Sea, which have, among other consequences, resulted in companies re-routing vessels, the war between Israel and Hamas and the armed conflict between Israel and Hezbollah, the political and military instability in the Middle East, the Russia-Ukraine conflict, rising inflation and corresponding interest rates and the aftermath effects of the COVID-19 pandemic or other pandemics; our expectations regarding trends related to the global container shipping industry, including with respect to fluctuations in vessel and container supply, industry consolidation, demand for containerized shipping services, bunker and alternative fuel prices, charter and freights rates, container values and other factors affecting supply and demand; our plans regarding our business strategy, areas of possible expansion and expected capital spending or operating expenses; our ability to adequately respond to political, economic and military instability in Israel and the Middle East (particularly as a result of the Israel-Hamas war and the Israel-Hezbollah armed conflict), and our ability to maintain business continuity as an Israeli-incorpora

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS A. Directors and senior management Not applicable. B. Advisers Not applicable. C. Auditors Not applicable.

OFFER STATISTICS AND EXPECTED TIMETABLE

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE A. Offer statistics Not applicable. B. Method and expected timetable Not applicable.

KEY INFORMATION

ITEM 3. KEY INFORMATION A. Selected financial data [Reserved] B. Capitalization and indebtedness Not applicable. C. Reasons for the offer and use of proceeds Not applicable. D. Risk factors You should carefully consider the risks and uncertainties described below and the other information in this annual report before making an investment in our ordinary shares. Our business, financial condition or results of operations could be materially and adversely affected if any

View Full Filing

View this 20-F filing on SEC EDGAR