Marseilles: French container operator CMA CGM has stated that it expects operating profit for the group to return to the breakeven point in December 2009, ahead of the company's cautious forecasts in September 2009. It has attributed this bounce back to a combination of cost saving measures implemented across the group and a rebound in cargo rates - particularly on its Asia / Northern Europe routes.
"Thanks to its modern fleet and the drastic measures initiated in every sector of the company and with the economy showing signs of improvement, the CMA CGM Group is well-positioned from an operating standpoint to return to profitability in 2010," said Nicolas Sartini - senior vice president, Asia-Europe Lines.
In a statement to the press, the group said that its savings plan applied throughout all segments, combined with increasingly firm volumes and rates, is already producing its initial effects.
The key measures introduced were:
- Closing of secondary lines to concentrate volumes on the main lines, allowing the group to take advantage of strategic vessels
- An increase in strategic shipping partnerships with the two-fold aim of improving service quality and rationalizing operating costs;
- Redelivery of chartered ships
- Reduced logistics expenses and port expenditures
- Optimised capacity in line with transport demand on all the Group's lines
Additionally the group expects to benefit from the implementation of "super eco speed" on all its ocean-going ships on lines by the end of the year, reducing fuel consumption and saving tens of millions of dollars.
CMA CGM is also enjoying a rebound in cargo rates on Asia - Europe, Asia - Mediterranean and Asia - South America routes. 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. CMA CGM's other lines are expected overall to reach the breakeven point by the end of 2009. [19/11/09]
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
