Zim leaves India routes in cost cutting moves

Israel Corp. (TASE: ILCO) unit Zim Integrated Shipping Services Ltd. continues to cut costs amid an unprecedented low in the shipping industry.

Sources inform "Globes" that Zim is leaving the Indian Subcontinent Europe Service (ISES) consortium, and will remove two ships out of the current seven that ply the line.

At the same time, talks have begun between Zim management and workers about the possibility of hundreds of layoffs. Zim currently employs 900 workers in Israel and 3,000 overseas.

According to foreign media services, the other companies in the ISES consortium, including the Shipping Corp. of India, �K� Line, Yang Ming, and MISC Berhad, are considering the options of continuing the line without Zim.

"Globes" recently reported that Zim is reorganizing its shipping lines, in light of a global economic slowdown. Among the steps it is taking is cutting back international shipping service lines, although it may continue operating some unprofitable lines in order to keep up its volume.

Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2008

Zim leaves India routes in cost cutting moves

Talks have begun between Zim management and workers about the possibility of hundreds of layoffs.