CMA CGM expects to break even by January, profit next year

Time:2009-11-23 Browse:69 Author:RISINGSUN

MARSEILLES` CMA CGM Group, the world`s No 3 container shipping line after Maersk and MSC, expects to return to a breakeven point by January and make a profit next year, according to a statement from the troubled company.
"With the economy showing signs of improvement, the CMA CGM group is well-positioned to return to profitability in 2010," said CMA CGM Asia-Europe vice president Nicolas Sartini.
"Asia-Northern Europe lines, which account for nearly a quarter of the volumes transported by the group, have returned to profitability since October," said the company statement. "The savings plan, combined with increasingly firm volumes and rates, is already producing its initial effects."
Remedial measures include closing secondary lines, thus allowing the deployment of "strategic vessels" as well as an increase in shipping partnerships, cut operating costs. This was combined with the redelivery of chartered ships, reducing logistics and port expenditures and optimising capacity with demand on all trade lanes, the company said.
To this has been added slow steaming, or "super eco speed" for all ships to further reduce fuel consumption, "thus saving tens of millions of dollars".
A rebound in freight rates, said the company, has occurred in most trades, notably, Asia-Europe, Asia-Med and Asia-South America.