The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Benjamin Nolan - Stifel, Nicolaus & Co., Inc. - Analyst
: Great. And there have been some questions I've been watching that have come in. I'll start with one that I saw that came in. So this morning, A.P.
Moller said that they expect rates to normalize in the second half of the year. And we discussed this a little bit yesterday. But just for maybe those
who weren't there, is that your opinion that rates normalize in the back half of next -- this year? And if so, what does normal look like when we get
there?
Question: Benjamin Nolan - Stifel, Nicolaus & Co., Inc. - Analyst
: Great. And I know that we have a little -- a little limited on time, but there's nothing much you have somewhere to go. I think we may be okay to
run a little over because I'm not done with my questions. But my next question is one of my own. And it relates to something that we've observed
going on lately, and that as charter rates have been increasing and are continuing to increase even now. And also durations are lengthening as a
function of just power on the part of asset owners.
It seems like many of your competitors then, and even it seems like even you guys a little bit, have been buying assets rather than leasing just
because your -- the value given the really elevated charter rates and long durations, maybe shifting a little bit more towards owning. And with
balance sheets as strong as yours is, it's not a problem. So how do you think about that?
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FEBRUARY 09, 2022 / 1:00PM, ZIM.N - ZIM Integrated Shipping Services Ltd at Stifel Transportation & Logistics
Conference
Question: Benjamin Nolan - Stifel, Nicolaus & Co., Inc. - Analyst
: Yes. Understood. So let's talk about your own contracted book here. And you are contracting with your own customers here. Can you talk about
where that stands if you're moving more towards contractor versus spot? Any color on where that strategy is for you?
Question: Benjamin Nolan - Stifel, Nicolaus & Co., Inc. - Analyst
: Okay. So another question I have is starting really next year, including some of your own, there is a large increase in the number of new container
ships being delivered into the market. Ideally, that eases some of the supply pressure a bit. But it doesn't necessarily mean that there will be less
volume or that your customers will have any less demand. I mean, is there a situation here where your prices can remain elevated, whereas your
cost may be able to fall and you see some market expansion? Or is it going to be more lockstep, do you think?
Question: Benjamin Nolan - Stifel, Nicolaus & Co., Inc. - Analyst
: Yeah, right. Well, 2023, 2024.
Question: Benjamin Nolan - Stifel, Nicolaus & Co., Inc. - Analyst
: Great. We are more than five minutes over our time limit, so I'd better cut it off or somebody will cut me off. But I really appreciate you guys, both
yesterday and today, being involved. And it's fascinating obviously, lots of people are very interested. So could not be more timely, and I appreciate
you taking some time to communicate with us and others. So thank you very much.
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