• ITVI.USA
    15,861.160
    -7.510
    0%
  • OTLT.USA
    2.793
    0.019
    0.7%
  • OTRI.USA
    21.460
    -0.010
    0%
  • OTVI.USA
    15,867.600
    -6.080
    0%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
  • ITVI.USA
    15,861.160
    -7.510
    0%
  • OTLT.USA
    2.793
    0.019
    0.7%
  • OTRI.USA
    21.460
    -0.010
    0%
  • OTVI.USA
    15,867.600
    -6.080
    0%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
    -0.240
    -14.9%
  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
    2.320
    0.220
    10.5%
  • TSTOPVRPM.LAXSEA
    4.110
    0.250
    6.5%
  • WAIT.USA
    126.000
    0.000
    0%
American ShipperShipping

CMA CGM reports higher profits, revenues for 2014

Volumes benefited from gains on East-West routes as well as regional and specialty brands, according to the French ocean carrier.

   Ocean carrier CMA CGM reported a consolidated net profit of $584 million in 2014, a 43 percent increase over the $408 million earned in 2013, according to the company’s latest financial statements.
   The company said the increase reflects improved operating performance, the 2013 sale of a 49 percent stake in Terminal Link to China Merchants Holdings International, and a reduction in net finance costs to $222 million from $445 million, including the $70 million positive impact of the euro-dollar exchange rate.
   Core earnings before interest and taxes in 2014 was $973 million, a 28.8 percent increase over 2013.
   The world’s third largest container carriers, headquartered in Marseilles, France, CMA CGM said revenue in 2014 was $16.7 billion, 5.3 percent more than the $15.9 million in revenue it reported for 2013.
   This reflected the fact that the company handled 12.2 million containers last year, 8.1 percent more than in 2013 and a record for the company.
   CMA CGM said its volume largely outpaced the market “thanks to gains on the leading East-West lines and the strong sales performance by the Group’s regional and specialty brands.”
   “In particular, volume growth was led by: the Asia-North Europe and Asia-North Africa trades, which enjoyed sustained growth; the reorganization of CMA CGM and Delmas’ Africa lines, combined with the opening of new inland corridors and dry ports; the more vigorous US economy; the expansion of the ANL subsidiary, specialized in Asia-Pacific trades, which increased volumes carried on existing lines and opened new shipping services.”
   The carrier said its e-business platform, opened in October 2013, handled 1.3 million TEUs in its first full year of operation.
   Looking forward to 2015, CMA CGM expects the container shipping market to “continue to expand by around 5 percent in volume, led by sustained growth in the US economy and the improving outlook in Europe, albeit with a certain amount of geopolitical uncertainty.”
   The company said it will expand its fleet in the coming year, taking delivery of six new 18,000-TEU vessels (of which three owned), twelve 9,400-TEU class vessels under long-term charter and three group-owned 2,100-TEU vessels.
   “These units will support growth in volumes carried, prepare the fleet for the broadening of the Panama Canal and help to improve operating performance, while lowering unit costs whereas freight rates will remain under pressure,” said CMA CGM.
   CMA CGM is finalizing an order for three additional new 20,600 TEU vessels to be delivered in 2017.
   The company said it will benefit from the Ocean3 vessel sharing agreements with China Shipping and United Arab Shipping, as well as from its agreements with Hamburg Süd in North and South America, and its acquisition of the short sea shipping company OPDR last November, which is still subject to regulatory approval.
   The recent decline in bunker prices may also have a positive impact on operating results this year, CMA CGM noted, but will be “subject to freight rate variations.”

Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.

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