CMA CGM boosts profitability amidst fall in volumes

CMA CGM improved profitability in all its business activities during the second quarter of 2020 as it adapted fleet capacity to demand and maintained cost discipline, mitigating a pandemic-related 13% decrease in container volumes carried.

Average revenue per teu was up by 3% to US$1,112 aiding the carrier’s financial performance, while unit cost by teu dropped 5% to US$892 due to the decline in oil prices, the group’s cost-cutting initiatives and the reduction in the fleet of vessels and containers deployed.

The French company managed to off-set a 9% drop in revenue to US$7bn, posting a net income of US$136m, which compares favourably to a US$109m loss in the equivalent quarter of 2019. EBITDA also improved by 26%, reaching more than US$1.2bn.