ZIM warns Turkish ban on Israeli ships will hit earnings as it reroutes vessels and seeks to limit impact.
Israeli shipping line ZIM Integrated Shipping Services Ltd (ZIM) has rerouted vessels originally scheduled to call at Turkish ports after the country introduced a new regulation barring ships owned, managed or operated by entities related to Israel from berthing.
ZIM said it received notice of the ban on August 22 through its local agent in Turkey. The rule, which took immediate effect, also prohibits vessels carrying military cargo destined for Israel from docking in Turkish ports. In addition, Turkish-flagged vessels will no longer be allowed to berth in Israeli ports.
“If the new regulation remains unchanged, it is expected to negatively impact the company’s financial and operational results. The company is currently developing a mitigation plan to reduce the potential adverse effects of this regulation. The company reaffirms its full year 2025 guidance as delivered in its 6-K filed on August 20, 2025,” ZIM said on Monday.
Ankara’s decision comes against the backdrop of Turkey’s escalating criticism of Israel’s military campaign in Gaza, where worsening famine conditions and mounting civilian casualties have fuelled international outrage in recent weeks. More than 500,000 people in Gaza are facing famine, with starvation, destitution and preventable deaths spreading rapidly, the UN Food and Agriculture Organisation (FAO), UNICEF, the World Food Programme (WFP) and the World Health Organisation (WHO) said in a joint statement last week.
ZIM reported a sharp drop in second-quarter profit as weaker freight rates and lower volumes hit earnings. Net income fell to US$24m in the quarter ended June 30 from US$373m a year earlier amid “highly uncertain market environment” mainly due to American tariff announcements. For the full year, the company expects adjusted EBITDA of US$1.8bn to US$2.2bn and adjusted EBIT of US$550m to US$950m. However, overall, ZIM believes there is a high degree of uncertainty related to global trade and the geopolitical environment moving forward.