CMA CGM Reports Solid Performance in 2013
Monday, March 31, 2014
Photo: CMA CGM

The Board of Directors of France’s CMA CGM, the world’s third largest container shipping company, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer, to review the financial statements for the year ended December 31, 2013.

“In 2013, in a difficult market, we successfully reduced our costs while increasing our volumes carried much faster than the market, enabling us to report one of the industry’s best financial performances, “Saadé, said. “In this way, year after year, we are reinforcing our position as the world’s third largest container shipping company. With these solid fundamentals and the pioneering spirit that has always been our strength, we are committed in 2014 to maintaining our profitability and driving faster growth.”

CMA CGM said that in 2013 consolidated revenue remained stable, easing back just 0.1% to $15.9 billion, while volumes carried rose by 7.5% to 11.4 million TEUs, in a market where volumes increased by around 3% over the year. As a result, the decrease in average revenue per TEU was held to 7.1%, which was less than the decline in the corresponding Shanghai Containerized Freight Indices (SCFI).

This performance reflects the diversity of the group’s markets and customers, as well as its growth dynamic, CMA CGM said. The launch of an e-commerce platform and the arrival of two new 16,200-TEU megaships illustrate such dynamic.

While deploying its growth strategy, CMA CGM maintained its operating cost discipline in response to the persistently difficult market conditions. This helped to drive a 5.3% reduction in costs per TEU and deliver an operating margin of 4.8%, one of the industry’s highest.

Consolidated net profit rose by 22.8% over the year to $408 million, partly as a result of the sale of 49% of Terminal Link, our terminal activities subsidiary in June.

In 2013, CMA CGM significantly strengthened its balance sheet and liquidity, thereby enhancing its financial flexibility, the group said. Equity was increased following the subscription of mandatory convertible bonds by France’s sovereign fund FSI (now Bpifrance) and by Yildirim in an amount of respectively $150 million and $100 million. The group has strengthened its financing sources, thanks to the agreement amending the covenants applicable to its bank financings, a €300-million bond issue, the implementation of a new securitization program and additional financings. As a result of the above, rating agencies upgraded CMA CGM to B2 for Moody’s and to B (positive outlook) for S&P.

With more than 20 distinctions awarded in 2013, CMA CGM was once again recognized as a container shipping partner of choice.

According to the company, container shipping overall volumes are expected to increase by 4-5% in 2014. Despite an initial upturn in freight rates at the beginning of the year, the group believes that rates will remain under pressure throughout the year given the persistent mismatch between supply and demand. In response, CMA CGM is continuing to deploy a strategy combining financial discipline and assertive marketing, which should enable it once again to deliver a significantly better operating performance than its peers.

In 2014, CMA CGM said it is especially focusing on fast growing regions with the launch of new services and the development of port infrastructure. This is notably the case in Africa with the strengthening of its lines, the development of overland corridors and the opening of new agencies and logistical terminals.

CMA CGM is also benefiting from the growth in its energy-efficient reefer container fleet, which should account for 50% of the total reefer fleet by year-end, or around 48,000 units. Reefers make it possible to containerize certain product categories that previously had to be carried bulk.

More generally, the group is continuing to align its services to customer needs, with purpose-designed solutions combining sea and overland shipping with logistical services.

Lastly, CMA CGM said it is steadily revamping its information systems with an innovative solution being developed in partnership with SAP.

In addition, deployment of the P3 operational alliance, announced by CMA CGM in June 2013, was cleared by the U.S. Federal Maritime Commission last March 20. This alliance is still subject to approval by a variety of regulators in Asia and Europe. The alliance will support the operating efficiency of its members by increasing fleet utilization.

Maritime Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Container Ships

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

SOLAS Container Mass Verification Rule Enter into force

A new regulation requiring the gross mass of a container to be verified before it is loaded onto a ship enters into force today (1 July 2016). It will assist in

UASC Shareholding States Vote to Back Hapag-Lloyd Merger

United Arab Shipping Company (UASC) said its six shareholding states backed a merger deal with German container shipping line Hapag-Lloyd AG at a meeting on Wednesday.


Will Zim Join 2M?

Israeli carrier Zim Integrated Shipping Services (ZIM) might join the 2M Alliance between Maersk Line and Mediterranean Shipping Co., Alphaline said quoting industry sources.

OOCL Tops the Chart in Reliability

According to the latest Carrier Performance Insight, produced by Drewry Supply Chain Advisors,  the most reliable carrier in May was Orient Overseas Container Line (OOCL),

Senate Confirms Three to Serve on Federal Maritime Commission

The U.S. Senate has confirmed the nominations of three individuals to serve as Federal Maritime Commissioners: Rebecca F. Dye, Michael A. Khouri and Daniel B. Maffei.


Will Zim Join 2M?

Israeli carrier Zim Integrated Shipping Services (ZIM) might join the 2M Alliance between Maersk Line and Mediterranean Shipping Co., Alphaline said quoting industry sources.

Diana Shipping Contract for m/v Oceanis With Nidera

Diana Shipping Inc.  has announced that, through a separate wholly-owned subsidiary, it entered into a time charter contract with Nidera S.P.A., Roma, for one of its Panamax dry bulk vessels,

India: Big Push on Coastal Shipping of Thermal Coal under Sagarmala

The State Government of Odisha will partner the Ministry of Shipping for taking ahead the ‘port-led development’ agenda under Sagarmala, the flagship programme of the Ministry.

Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2635 sec (4 req/sec)