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Zim Integrated Shipping Services Ltd., commonly known as ZIM ( he, צים, ''tsim''; a biblical word meaning "a fleet of ships", Numbers 24:24), is a
publicly held A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( lis ...
Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
i international cargo shipping company, and one of the top 20 global carriers. The company's headquarters are in
Haifa Haifa ( he, חֵיפָה ' ; ar, حَيْفَا ') is the third-largest city in Israel—after Jerusalem and Tel Aviv—with a population of in . The city of Haifa forms part of the Haifa metropolitan area, the third-most populous metropoli ...
,
Israel Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
; Originating in 1945, ZIM has traded on the New York Stock Exchange since 2021. From 1948 to 2004, it traded as ZIM Israel Navigation Company.


History

ZIM was founded on June 7, 1945, as the ZIM Palestine Navigation Company Ltd, by the
Jewish Agency The Jewish Agency for Israel ( he, הסוכנות היהודית לארץ ישראל, translit=HaSochnut HaYehudit L'Eretz Yisra'el) formerly known as The Jewish Agency for Palestine, is the largest Jewish non-profit organization in the world. ...
, the Israel Maritime League and the
Histadrut Histadrut, or the General Organization of Workers in Israel, originally ( he, ההסתדרות הכללית של העובדים בארץ ישראל, ''HaHistadrut HaKlalit shel HaOvdim B'Eretz Yisrael''), is Israel's national trade union center ...
(General Federation of Laborers in the Land of Israel). The first ship was purchased in partnership with Harris and Dixon (based in
London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a major s ...
) in 1947. This vessel was refurbished, renamed SS ''Kedma,'' and sailed to the future state of Israel in the summer of 1947. After the State of Israel was established in 1948, the company was renamed ZIM Israel Navigation Company Ltd. During its first years, its main task was transporting hundreds of thousands of immigrants to the emerging state. Some of the other ships that had been used for clandestine immigration before the establishment of Israel as a state were confiscated by the British Mandate authorities and later joined the company's fleet. The company continued to purchase more ships, among them SS ''Negba'', SS ''Artza'' and SS ''Galila''. During
1947–1949 Palestine war The 1948 Palestine war was fought in the territory of what had been, at the start of the war, British-ruled Mandatory Palestine. It is known in Israel as the War of Independence ( he, מלחמת העצמאות, ''Milkhemet Ha'Atzma'ut'') and ...
, the company was the sole maritime connection with the State of Israel, supplying food, freight and military equipment. In 1953, some of the money from the reparations agreement between Israel and
West Germany West Germany is the colloquial term used to indicate the Federal Republic of Germany (FRG; german: Bundesrepublik Deutschland , BRD) between its formation on 23 May 1949 and the German reunification through the accession of East Germany on 3 ...
was allocated to the purchase and construction of new ships. The , renamed ''Jerusalem'', sailed the Israel-New York route, Another ship purchased with reparations money was the SS Theodor Herzl . The company took delivery of its first new vessels, the 9800 ton passenger-cargo liners SS ''Israel'' and SS ''Zion'' - later known as , in 1955 and 1956, respectively. 1957 saw the delivery of two more new ocean liners, the 10,000 ton sister ships SS ''Jerusalem'' and SS ''Theodor Herzl'', followed by the more modest, 7,800 ton SS ''Moledet''in 1961, which featured an all-Tourist Class layout, targeted principally to American tourists looking for affordable transportation to the Holy Land. In 1950s and 1960s, ZIM concentrated on passenger ships, alongside a constant expansion of the cargo shipping business. Passenger liners were a common means of international transport before the emergence of cheap air transport, and pleasure cruises were also popular. ZIM sailed the
Mediterranean Sea The Mediterranean Sea is a sea connected to the Atlantic Ocean, surrounded by the Mediterranean Basin and almost completely enclosed by land: on the north by Western and Southern Europe and Anatolia, on the south by North Africa, and on the e ...
, as well as having regular routes to the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territo ...
. Some of its ships cruised to the
Caribbean The Caribbean (, ) ( es, El Caribe; french: la Caraïbe; ht, Karayib; nl, De Caraïben) is a region of the Americas that consists of the Caribbean Sea, its islands (some surrounded by the Caribbean Sea and some bordering both the Caribbean S ...
during the winter. 1964 saw the completion of the 25,000 ton
ocean liner An ocean liner is a passenger ship primarily used as a form of transportation across seas or oceans. Ocean liners may also carry cargo or mail, and may sometimes be used for other purposes (such as for pleasure cruises or as hospital ships). Ca ...
, which turned out to be a failure, marking the end of the ZIM passenger shipping era. Due to rising airline competition and the market failure of the expensive new ''Shalom'', passenger services were gradually phased out between 1966-1969, as ZIM refocused on cargo shipping. ''Jerusalem'' was chartered out to British-based P&O Cruises in 1966 to become their ''Miami'', then sold entirely in 1968. The sisters ''Israel'' and ''Zion'' were both sold in 1966, while the expensive, new ''Shalom'' was retired and sold in 1967. ''Theodor Herzl'' and ''Moledet'' completed ZIM's final transatlantic passenger sailings during 1969 and were sold off, marking the end of the company's passenger division. ZIM was invited in 1957 by the Government of
Ghana Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in Ghana–Ivory Coast border, the west, Burkina ...
to assist the setting up and management of a national shipping line. Black Star Line was formed with a 40% participation by ZIM and principally operated cargo services from West Africa. A similar joint venture - Burma Five Star Line - was made with the Burmese Government in 1959. During the 1960s, ZIM started to turn its focus to cargo ships, and obtained several special-purpose vessels, including refrigerated ships and oil tankers. ZIM transported crude oil from
Iran Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkme ...
to Israel and oil byproducts from Israel to Europe. In the 1970s, ZIM expanded into the
container A container is any receptacle or enclosure for holding a product used in storage, packaging, and transportation, including shipping. Things kept inside of a container are protected on several sides by being inside of its structure. The term ...
shipping business. ZIM ordered six such ships, and gradually made this its main line of business. In 1981, one of the company's ships, ''Mezada'', was lost at sea. Despite a lull in maritime shipping at the beginning of the 1980s, the company built 15 more ships in Germany in the 1990s. At this time, the ownership of ZIM was divided between the Israeli government and Israel Corporation. In 2008, ZIM planned to launch an initial public offering and selling 25% of its shares on the
Hong Kong Stock Exchange The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...
, but due to the onset of the global economic crisis it was called off. In 2009, ZIM required a cash injection of $450 million by the Ofer family and debt restructuring following the world's container shipping downturn. In 2010, ZIM regained profitability and in early 2011 ZIM renewed its plans for a flotation on the
Hong Kong Stock Exchange The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...
, but again had to postpone it due to the economic downturn and the drop in container shipping rates. In 2014, unloading of a ZIM ship at the
Port of Oakland The Port of Oakland is a major container ship facility located in Oakland, California, in the San Francisco Bay. It was the first major port on the Pacific Coast of the United States to build terminals for container ships. As of 2011 it was the f ...
was delayed by anti-Israel protesters. Longshoremen declined to load the ship out of safety concerns, taking no position on the underlying dispute, but unloaded the ship after their safety was assured. Other protests in
Los Angeles Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the world' ...
and
Tacoma, Washington Tacoma ( ) is the county seat of Pierce County, Washington, United States. A port city, it is situated along Washington's Puget Sound, southwest of Seattle, northeast of the state capital, Olympia, and northwest of Mount Rainier National Pa ...
failed to stop the unloading of cargo from ZIM ships. A second demonstration bypassed Oakland for Los Angeles when longshoremen, not participating in the protest, refused to unload the ship after being physically threatened and their vehicles blocked when they tried to report for work. Protesters' claim they impacted ZIM's shipping schedule was denied by the company, and the local Jewish Community Council denounced the "hateful" rhetoric of the demonstrators. In July 2014, by which time the company was almost wholly owned by Israel Corporation, ZIM was restructured with 68% of the group's shares owned by its creditors and bondholders, and 32% retained by Israel Corporation, and starting early 2015 by
Kenon Holdings Kenon Holdings is a public corporation, which is a spin off from Israel Corporation, traded on the New York Stock Exchange and the Tel Aviv Stock Exchange. Owned by Israeli businessman Idan Ofer, it controls Israel Corp's investment in companie ...
, a spin-off company of Israel Corporation. In mid-to-late 2015, plans to revive an
initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
were implemented. ZIM debuted on the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its listed co ...
in January 2021, with the backing of
Citigroup Citigroup Inc. or Citi ( stylized as citi) is an American multinational investment bank and financial services corporation headquartered in New York City. The company was formed by the merger of banking giant Citicorp and financial conglomera ...
,
Goldman Sachs Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, Hong ...
, and
Barclays Barclays () is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services. Barclays traces ...
. In March 2021, Zim reported the biggest profit in its 75-year history.


Privatization

In 2004, the Israel Corporation (which is controlled by the Ofer Brothers Group) purchased 49% of ZIM's shares held by the Israeli government, becoming the sole owner of the company. The new official name after privatization became ZIM Integrated Shipping Services. The purchase deal for about five hundred million New Israeli Shekels was severely criticized by the press and the
State Comptroller of Israel The State Comptroller of Israel ( he, מבקר המדינה ''Mevaker HaMedina'', ar, مراقب الدولة, literally: ''Critic of State'') inspects, reviews, and audits the policies and operations of the government of the State of Israel. Th ...
as being undervalued and becoming just another
flag of convenience Flag of convenience (FOC) is a business practice whereby a ship's owners register a merchant ship in a ship register of a country other than that of the ship's owners, and the ship flies the civil ensign of that country, called the flag sta ...
company. In 2007, ZIM sold its maritime logistics and forwarding services subsidiary NewLog to UTi Worldwide.


Operational statistics

*Annual turnover 2018: $3.2 billion *TEU's Carried in 2018: 2,914,000 million *Total TEU Capacity (owned and chartered vessels): 344,460 TEU's *Containers: over 547,000 TEUs of various types *About 70 vessels, 13 fully or partly owned *Ports of Call: 180 throughout the world, with 10 strategically located hubs *Services: Over 70 lines and services, mostly on a weekly, fixed-day basis, covering all major trade routes with regional connections *Employees: ~4200 *Regional Headquarters: Haifa (Israel), Norfolk, Virginia (USA), Liverpool (United Kingdom), Hamburg (Germany), Hong Kong *Agents: ZIM has more than 170 offices and representatives in over 100 countries throughout the world


Fleet


See also

* Israel Corporation * Zodiac Maritime * Edmond Wilhelm Brillant * Top container shipping companies


References


External links

*
Zim Israel Navigation Company Ltd.: The Fifty-Years Success Story of a Shipping Company, 1945–1995
by Chaim Bar-Tikva. Haifa, 1996
The Test of Maritime Sovereignty: The Establishment of the Zim National Shipping Company and the Purchase of the Kedmah, 1945–1952
y Kobi Cohen-Hattab. ''
Israel Studies ''Israel Studies'' is a triannual peer-reviewed academic journal covering the history, politics, society, and culture of the modern state of Israel. It was established in 1996 S. Ilan Troen as founding editor(Brandeis University). It is publishe ...
'', Volume 20, Number 2, Summer 2015, pp. 110-134,
Indiana University Press Indiana University Press, also known as IU Press, is an academic publisher founded in 1950 at Indiana University that specializes in the humanities and social sciences. Its headquarters are located in Bloomington, Indiana. IU Press publishes 140 ...
{{Container shipping companies Shipping companies of Israel Container shipping companies Water transport in Israel Multinational companies headquartered in Israel Companies based in Haifa Transport companies established in 1945 Israeli brands Formerly government-owned companies of Israel Companies listed on the New York Stock Exchange