Saturday , 21 October 2017
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CMA CGM confirms ULCV order while posting strong results
The APL acquisition helped to increase volumes

CMA CGM confirms ULCV order while posting strong results

CMA CGM has confirmed it is ordering nine container ships with a capacity of 22,000 teu, with the first vessels to come into service from the end of 2019.

The carrier expects the vessels, which will be the largest in the world. to reduce unit transport costs particularly on Asia – Europe routes.

The announcement was made while the carrier posted strong second quarter results, with volumes up by 33% to 4.73m teu, boosted by the addition of volumes from the acquired American President Lines (APL).

Higher freight rates plus the inclusion of volumes from the former Singapore-based line helped revenue jump by 57% to US$5.55bn and net income reach a profit of US$219m from a loss of US$129m in the equivalent quarter last year.

The increase in freight rates on most of the group’s lines led to a 12.5% increase in average revenues per container in the second quarter of 2017.

The company also reported a core EBIT margin of 8.9% to US$47m, showing a significant increase of 11.2 points.

Over the quarter, the Ocean Alliance, of which CMA CGM is a member, began operations while the French carrier also agreed to acquire Brazilian cabotage specialist Mercosul Line from Maersk Line.

In April, the company also signed a joint venture agreement with Adani to jointly operate the new container terminal at the Port of Mundra.