[Management View]
ZIM Integrated Shipping Services Ltd. management emphasized the impact of American tariff announcements on volume and pricing, highlighting fleet modernization as a key strategic priority. The delivery of 46 newbuild vessels in 2023 and 2024, along with new LNG-capable ships for 2027 and 2028, were noted as cost and environmental differentiators.

[Outlook]
The company updated its full-year guidance, raising adjusted EBITDA to $1.8 billion-$2.2 billion and adjusted EBIT to $550 million-$950 million. Management anticipates continued pressure on freight rates and a weak peak season, with operational capacity expected to remain similar to 2024.

[Financial Performance]
Total revenue for Q2 2025 decreased by 15% YoY, driven by lower freight rates and reduced volumes. Net income fell to $24 million from $373 million YoY. Adjusted EBITDA and EBIT margins compressed to 29% and 9%, respectively, down from 40% and 25% in Q2 2024.

[Q&A Highlights]
Question 1: Omar Nokta from Jefferies asked about the expectation of flat volumes for the year and whether it was driven by market views or ZIM's decision not to renew some charters.

Answer: Xavier Destriau explained that the expectation is driven by both factors. Last year saw strong volume growth, but this year, the peak season in Q3 is expected to be weaker. ZIM will operate similar capacity but does not anticipate beating last year's record volumes. The reshuffling of capacity due to US-China tariff discussions impacted volumes by approximately 50,000 TEUs.

Question 2: Omar Nokta inquired about the business outlook over the next eighteen months, considering the 34 ships up for renewal.

Answer: Xavier Destriau acknowledged the market's volatility and noted that ZIM's fleet strategy allows for flexibility in adjusting capacity based on market conditions. The company is prepared to respond dynamically to changes in demand and geopolitical events.

[Sentiment Analysis]
Analysts expressed concern over tariff-related disruptions and their impact on volumes. Management maintained a cautious tone, emphasizing operational flexibility and strategic fleet adjustments to navigate market volatility.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|-------------------------|---------|---------|
| Revenue | $1.6B | $1.88B |
| Net Income | $24M | $373M |
| Adjusted EBITDA | $472M | $752M |
| Adjusted EBIT | $149M | $470M |
| Carried Volume (TEUs) | 895,000 | 952,000 |
| Free Cash Flow | $426M | $712M |

[Risks and Concerns]
Key risks include ongoing tariff volatility, particularly in the Trans-Pacific corridor, and weak freight rate outlook for the remainder of 2025. The geopolitical environment and potential overcapacity in other trades due to tariff impacts are additional concerns.

[Final Takeaway]
ZIM Integrated Shipping Services Ltd. faces significant challenges due to tariff-induced market disruptions and pricing pressures. Despite these headwinds, the company is strategically positioned with a modernized fleet and operational flexibility to adapt to changing market conditions. Management's cautious outlook reflects the uncertainty in global trade dynamics, but their focus on fleet modernization and geographic diversification aims to enhance business resilience and capitalize on growth opportunities in emerging markets.