Home » Breaking News, Maritime » CMA CGM swings to net loss of $30 million

CMA CGM, the world’s third largest container shipping group, reported a net loss of US$30 million in 2011, down from a profit of $1.6 billion in the previous year.

In its financial statement on March 7, the Marseilles-based ocean liner announced revenue of $14.87 billion for 2011, a 4 percent increase over 2010.

Volumes carried increased by 11 percent, outperforming the market’s 6.5 percent increase and reaching a record high of 10,016,000 TEUs (20-foot equivalent units). Ebitda stood at $711 million, down from 2010’s $2.5 billion, the company said.

CMA CGM described the market last year as “challenging,” shaped by overcapacity and the steep run-up in oil prices, with per-tonne bunker prices soaring 34 percent over the year.

“CMA CGM nevertheless enjoyed a satisfactory operating performance, thanks to its extremely efficient fleet, global network, and sustained cost discipline,” it added.

Said Rodolphe Saadé, group executive officer: “Once again this year, CMA CGM has demonstrated its strong resilience at a time of intense turmoil in our industry. Our operating and financial performances were among the best in the industry.”

For 2012, the group expects to report a profit “in a market that is difficult to predict” by introducing significant rate increases beginning March 1.

In addition, the group plans to take other measures to boost operating performance, such as intensifying partnerships with MSC on the Asia-North Europe and South America lines, and with Maersk Line on the Asia-Mediterranean, Adriatic, and Black Sea trades.

It also intends to deploy more efficient, modern, and cost-effective vessels on every trade, and upgrade information technology services through a new partnership with IBM.

CMA CGM said it is pursuing a cost reduction plan that can deliver $400 million in savings this year, while the decline in charter rates can reduce operating costs by $80 million.

 

Photo: PhillipC


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