ZIM Integrated Shipping Services Ltd has reported a strong start to the year with Q1 2024 revenues surging 14 per cent reaching US$1.56 billion and a net income of $92 million, compared to a net loss of $58 million in the first quarter of 2023.

While the shipping industry as a whole is stretched largely due to diversions away from the Red Sea, Zim CEO Eli Glickman said the ocean carrier is well-positioned, having chartered larger and more-fuel efficient vessels and invested $1 billion in containers.

Container equipment investments and chartering decisions are allowing the Israeli carrier to capitalize on surging Asia-US freight rates.

The company's successful fleet upscaling strategy and increased demand have led to higher freight rates, prompting an upward revision of its full-year 2024 adjusted EBITDA forecast to between $1.15 billion and $1.55 billion.

Carried volume in the first quarter was 846,000 TEU, a year-over-year increase of 10 per cent.

Average freight rate per TEU in the first quarter was $1,452, a year-over-year increase of 4 per cent.

Commenting on the results, Mr Glickman said: "We are pleased with the current positive momentum in our business. Having taken important steps to revamp our fleet and enhance our cost structure, which exceeded our expectations.

"Looking ahead, we now expect freight rates to remain stronger for longer than initially anticipated due to a combination of continued pressure on supply and availability of equipment and a recent uptick in demand.

While the rate environment during the latter part of 2024 remains unknown, we are confident in ZIM's strategic positioning as an agile container shipping player with a competitive cost- and fuel-efficient, modern fleet."