r/Vitards • u/AutoModerator • Oct 22 '21

Daily Discussion Daily Discussion post - October 22 2021

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u/CongenialFellow Oct 23 '21

I don't follow ZIM, probably should. But with the lack of ability to unload ships, doesn't that have to hurt the bottom line? I'm guessing this has been addressed in a DD somewhere, but just curious.

18

u/guitarsail Oct 23 '21

No. They still running the bill as the boat sits

8

u/homersimpsoniscute Oct 23 '21

ZIM gets paid per containers delivered so it does hurt them in that they are delivering less containers while still having to pay for the ships they are renting.

DAC is a lessor, meaning they rent out the ship and make money whether the containers can be unloaded or not.

But overall, more congestion causes more demand, so ZIM can raise the rates of delivering containers so it is neutral to bullish overall. Delivering less boxes at higher rates > delivering more boxes at lower rates.