CMA CGM Posts 17.1% Hike in Sales in Q1
CMA CGM said that its first quarter sales rose $5.41 billion, up 17.1 percent from the year-earlier period, buoyed by a rise of 15 percent in volumes.
The Container Line cited good results of vessel-sharing Ocean Alliance and strong momentum of the African/US and North America/South America lines.
Rodolphe Saadé, Chairman and CEO of the CMA CGM Group stated: “The shipping industry is experiencing sustained growth but was hit in the first quarter by the sharp increase in bunker prices. In this environment, CMA CGM succeeded in recording a strong increase both in volumes transported and in revenue, while maintaining a positive core EBIT margin, thus demonstrating once again the relevance of our strategy. Volumes should remain high throughout the year.
"In order to deal with the increase in bunker prices, which continue to rise into the second quarter, we are implementing an exceptional surcharge," he added.
The CMA CGM Group will continue its development strategy for its customers both in maritime transportation and in building end-to-end solutions, while pursuing its digital transformation and strengthening the expertise of its teams.”
The market should see strong volume growth in 2018. The delivery of new vessels will significantly decrease in the second half of the year. In this context, CMA CGM expects an improvement in the market environment in the second half of 2018, excluding bunker costs and the impact of exchange rates.
The measures announced by the CMA CGM Group regarding the increase in freight rates, the implementation of Emergency Bunker Recovery Measures and cost reduction initiatives should bear fruit in the second half of 2018.