FRENCH shipping giant CMA CGM posted a 419 per cent first quarter year-on-year net profit increase to US$406 million, drawn on revenues of $4.01 billion, which increased of 1.8 per cent.
Volumes rose 10.5 per cent in the period to 3.1 million TEU, led by increased traffic on the east-west trade lanes, particularly to the US, which enjoyed much growth since the start of the Ocean Three Alliance.
The company opened five new routes in the US and extended its network to 655 agencies in over 160 countries. On May 11, it signed an agreement to manage a logistics platform in Cuba.
"The group reaped the rewards of its operating efficiency and cost discipline as well as the sharp drop in bunker prices (bunker costs per TEU down 36.5 per cent)," said the company statement.
This balanced financial strategy was recently recognised by Moody's, which raised the Group's credit rating to B1 with a stable outlook.
The CMA CGM fleet will be further strengthened in 2016/2017 following confirmation of its acquisition of three 20,600-TEU vessels to be delivered in 2017.
"Spot freight rates for Asia-Europe lines have been rather volatile since the Chinese New Year; volumes remain sluggish," said the company statement.
The company obtained the 30-year concession for the container terminal in Kingston, Jamaica.
"CMA CGM LOG, the Group's logistics subsidiary, continues its expansion. On April 30, the subsidiary announced that it had acquired LCL Logistix, a logistics leader in India," said the company.
This enables CMA CGM to accelerate its development in this fast-growing market.
WORLD SHIPPING
20 May 2015 - 15:01
CMA CGM profit up 419pc to US$406 million as revenue rises 1.8pc
FRENCH shipping giant CMA CGM posted a 419 per cent first quarter year-on-year net profit increase to US$406 million, drawn on revenues of $4.01 billion, which increased of 1.8 per cent.
WORLD SHIPPING
20 May 2015 - 15:01
CMA CGM profit up 419pc to US$406 million as revenue rises 1.8pc
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