Wednesday, 18 November 2009

Cost control will pull CMA CGM out of the red

Deepsea carrier CMA CGM is expecting to return to breakeven point by December, thanks to its cost-cutting efforts and a rebound in rates and volumes.
The Marseille-based shipping line said: “The savings plan applied throughout all segments of the group, combined with increasingly firm volumes and rates, is already producing its initial effects.”
The cost saving measures include; closing of secondary lines to concentrate volumes on the main lines; an increase in strategic shipping partnerships; redelivery of chartered ships; reduced logistics expenses and port expenditures; optimised capacity in line with transport demand.
It added a rebound in cargo rates had been observed on Asia–north Europe, Asia–Mediterranean and Asia–South America services.
The carrier said its Asia-north Europe services, which account for almost quarter of its volumes, returned to profitability in October and its other lines are expected to reach breakeven point by the end of this year.
CMA CGM also announced it would extend its super-eco speed program across all ships on ocean-going services to reduce fuel consumption and costs.
CMA CGM’s latest vessel, which it took delivery of last week, is capable of sailing at speeds of around 14-15 knots.
Earlier this week the CKYH alliance of shipping lines, which includes Cosco, K-Line, Yang Ming and Hanjin, announced they would also fully implement super-slow steaming.
Maersk Line has also implemented a super-slow steaming program.

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