Why Zim Integrated Shipping Is Up Today
Trouble on the high seas is causing shipping rates to soar, which in turn is helping Zim Integrated Shipping Services (NYSE: ZIM) deliver for investors.
The container shipping company's shares jumped sharply at the open Monday and were up by about 22% as of 10:56 a.m. ET after the company released quarterly results that easily topped expectations.
Zim incurs high fixed costs to buy and maintain ships, but it operates in a cyclical business -- it can experience huge swings in revenue based on the health of the global economy and demand for capacity inside those ships.
Source Fool.com