Friday, September 6, 2019

Shipping: CMA CGM Reported a Second Straight Quarterly Loss

Via gCaptain, September 6:

 CMA CGM Stays in Red
CMA CGM, the world’s fourth-largest container shipping firm, reported a second straight quarterly loss as its takeover of CEVA Logistics weighed on its results, but said its business volumes remained strong thanks to growth in the U.S. economy.

The French-based group said on Friday that it expected a better second half of the year, supported by previously announced plans to reduce costs and reorganise its shipping services.
CMA CGM said it made a second-quarter net loss of $109 million, adding to a $43 million loss in the first quarter.

The group’s shipped volumes increased by 6.3% year-on-year, accelerating from 4.4% growth in the first quarter, driven by brisk U.S. demand and healthy activity on its intra-regional lines.
The company reiterated that a U.S.-China trade dispute was curbing its activity, with Southeast Asia partly replacing China in meeting high U.S. import demand.

“The environment is complicated but so far we have not seen an effect on our shipped volumes from the trade war or general uncertainty,” Chief Financial Officer Michel Sirat said....

And possibly related, September 3:
China Merchants in Talks to Invest in CMA CGM Port Assets