Israeli shipping company ZIM, listed on the New York Stock Exchange, revealed to analysts during the release of its third-quarter financial report this week that the company believes the possibility of returning to the Red Sea is increasing and is awaiting approval from insurance companies to return to the Red Sea.

Such a statement has surprised other container shipping companies, as most are unsure if ZIM has insider information, especially regarding whether the Houthi armed group has actually stopped attacks.

ZIM President Eli Glickman, when asked about the possibility of returning to the Red Sea and potentially increasing market share in the Asia-Europe trade market during the company's third-quarter earnings report, stated: "The answer is affirmative. In fact, we are waiting for insurance companies to approve our return to the Red Sea, Suez Canal, Bab el-Mandeb, and we are looking forward to trading shorter than around the Cape of Good Hope."

Since November 2023, the Houthi armed group has been attacking vessels related to Israel in the Red Sea as a response to the Gaza conflict between Israel and Hamas. ZIM was one of the first companies to reroute around the Cape of Good Hope.

Eli Glickman mentioned during the call that while the current ceasefire situation in Gaza is encouraging, further confirmation of its permanence is needed. He noted, "That being said, we believe that at the moment, the likelihood of returning to the Suez Canal in the near future is increasing."

He also highlighted that from a business perspective, reopening the Suez Canal route presents opportunities to enhance fleet efficiency and save costs, but there are risks of increasing fleet supply and further depressing freight rates. The market expects that canceling vessels taking the Cape of Good Hope route will release 5-10% of capacity.

ZIM reported a net profit of $123 million in the third quarter of this year, a drop of nearly 90% compared to $1.13 billion in the same period last year. Third-quarter revenue was $1.78 billion, a 36% decrease, closely aligning with the 35% drop in average revenue per container (20-foot) to $1,602.