CMA CGM increases prices and reduces costs

After USD 30 million losses in 2011 the CMA CGM container shipping company plans to return to the profit zone this year

Based on cost reductions at the amount of USD 400 million and a prognosticated decline of charter prices by USD 80 million, accompanied by the significant increase in freight rates effective as of 1 March, the French liner shipping company CMA CGM wants to generate profit again in 2012 in spite of the difficult conditions in the global container shipping business. In a press release the management confirms its interest in implementing measures to strengthen its position on the trade lanes from/to Russia, India, Africa and South America as well as in the “reefer business”.

In the 2011 financial year the world’s third-largest container shipping company grew faster than the market, by its own account. The increase in volume by 11 per cent to 10.016 million TEU compared to last year was accompanied by an increase in sales revenues of 4 per cent to USD 14.9 billion. Operating results in 2011 amounted to USD 711 million. Net profit posted losses at USD 30 million.

At the accounting date the fleet of CMA CGM consisted of 394 vessels providing a transport capacity of 1.345 million TEU, including 91 own units. For the near future the enterprise announced a stronger use of modern and cost efficient vessels on all routes.

Quelle: LogEastics
Portal: www.logistik-express.com