Zim Integrated Shipping Services

History

ZIM was founded in 1945, by the Jewish Agency and the Histadrut (General Federation of Laborers in the Land of Israel). The first ship was purchased in partnership with Harris and Dixon (based in London) in 1947. This vessel was refurbished, renamed SS Kedma, and sailed to the future state of Israel in the summer of 1947. During her first years, her 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 the 1948 war, 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 was allocated to the purchase of new ships. The SS Bergensfjord, renamed Jerusalem, sailed the Israel-New York route, Another ship purchased with reparations money was the SS Etzel. The SS Dolphin IV, acquired in 1956, was renamed SS Zion.

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, as well as having regular routes to the United States. Some of its ships cruised to the Caribbean during the winter. 1964 saw the completion of the ocean liner SS Shalom, which turned out to be a failure, marking the end of the ZIM passenger shipping era.

During the 1960s, ZIM started to turn its focus to cargo ships, and obtained several special-purpose vessels, including refrigerated shipping, and oil tankers. ZIM transported crude oil from Iran to Israel, and oil byproducts from Israel to Europe.

In the 1970s, ZIM expanded into the container 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 August 2014, unloading of the Zim Piraeus at the Port of Oakland was delayed after a protest against Israel's actions in Gaza. 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.

In 2010, another demonstration was conducted against a Zim vessel in response to the Israeli attack on the Mavi Marmara Gaza Freedom Flotilla.

After the 2014 Oakland demonstration there were protests at the port of LA and at Tacoma, Washington which failed to stop the unloading of cargo from Zim ships. A second demonstration in Oakland in September 2014 resulted in a Zim ship not being unloaded and heading to Los Angeles instead. 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 claimed success in compelling Zim shipping to take Oakland and L.A. off its schedule, an action the Oakland port contends will cost jobs for dockworkers.

In mid to late 2015, plans to revive an initial public offering were implemented. The listing will likely take place on the New York Stock Exchange in 2016. Both Bank of America Merrill Lynch and Barclays will lead the IPO.

Privatization

In 2004, ZIM 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 as being undervalued and becoming just another flag of convenience company. In 2007, Zim sold its maritime logistics and forwarding services subsidiary NewLog to UTi Worldwide.

Planned stock offering

In 2008, ZIM planned to launch an initial public offering and selling 25% of its shares on the Hong Kong Stock Exchange, 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, but again had to postpone it due to the economic downturn and the drop in container shipping rates.

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, a spin-off company of Israel Corporation.