Ocean cargo/global logistics: CMA CGM will be profitable in 2010
Among the key measures introduced by the carrier is the closing of secondary lines to concentrate volumes on primary routes.
Patrick Burnson -- Logistics Management, 11/19/2009
MARSEILLES—Operating profit for the CMA CGM Group is expected to return to the breakeven point in December 2009, ahead of the company’s cautious forecasts this past September.“Thanks to its modern fleet and the drastic measures initiated in every sector of the company, we are well-positioned from an operating standpoint to return to profitability in 2010,” said Nicolas Sartini, the carrier’s senior vice president, Asia-Europe lines.
Sartini also noted that the global economy “is showing signs of improvement.”
Spokesmen stated that the savings plan applied throughout all segments of the Group, combined with increasingly firm volumes and rates, is already producing its initial effects.
“The recovery of operating profit illustrates the shipping expertise of the CMA CGM teams, which have been entirely focused on achieving this objective,” said a spokesman at company headquarters in Marseilles.
Among the key measures introduced by the carrier is the closing of secondary lines to concentrate volumes on primary routes. There has also been an increase in strategic shipping partnerships with the twofold aim of improving service quality and rationalizing operating costs.
Furthermore, by soon extending “super eco speed” to all ships on ocean-going lines, the Group will further reduce fuel consumption by the end of the year, thus saving tens of millions of dollars.
Finally, a rebound in cargo rates has been observed on most of the lines: Asia – Europe, Asia – Mediterranean, Asia – South America. The Asia / Northern Europe lines, which account for nearly a quarter of the volumes transported by the Group, have returned to profitability since October 2009.
The Group’s other lines are expected overall to reach the breakeven point by the end of 2009. As noted in LM, A bullish sign of global economic recovery was revealed earlier this month the carrier’s the launching of one of the world’s largest container vessels. the CMA CGM “Christophe Colomb” represents the brand’s “flagship,” and in active deployment the in Asia/EU trade this season.
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