Sources inform ''Globes'' that Israel Corp. (TASE: ILCO) subsidiary Zim Integrated Shipping Services Ltd. is restructuring its main routes in the face of a projected global slowdown. Zim plans to cancel some routes and feeder lines. The global slowdown is not yet seriously affecting Zim's routes to Israel.
A few weeks ago, Zim cancelled its weekly EWX route between Asia and northern Europe, which was launched in January. Nine container ships operated on this route. Zim has replaced the EWX route with ships leased from China Shipping Container Liners Co. Ltd. (HKSE:2866; Shanghai: CN), with which it has a cooperation agreement.
Zim is also splitting its AMP route, which runs between Asia, Northern Europe, and the US, one of the company's main international routes. Foreign media sources report that Zim will divide this route into two: one between Israel and the Far East, and the other between the Far East and Canadian and US Pacific coast ports.
Zim is the world's 15th largest container shipping company, operating a fleet of 110 ships, of which 30 are owned outright and the rest are leased. The company will likely be one of the Israeli companies worst hit by the global slowdown.
Published by Globes [online], Israel business news - www.globes-online.com - on October 22, 2008
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