CMA CGM liftings up in 2019, but new rules and Ceva loss wipe out profits
CMA CGM has posted a net loss of $229m for 2019 – this compares with a profit of $34m the year before.
The French transport group’s result was dragged down by the $329m negative impact of new accounting rules on vessel time charters and a $140m loss by Ceva Logistics.
However, CMA CGM remains bullish about its liner trade outlook and its ability to turn around the loss-making logistics arm, despite the adverse effect of the coronavirus outbreak on Chinese exports.
Turnover at the group soared 29% on the previous year, to $30.3bn, boosted by $7.1bn in revenue from Ceva.....MORE
Container liftings on its fleet of 502 vessels increased by an above-industry par of 4.1%, to 21.6m teu, which CMA CGM attributed to growth in its shortsea business, “strong growth” in intra-Asia and “organic growth” in the African and Latin American trades.
“After an extremely robust January, the early part of the year has been marked by the Covid-19 crisis,” it said, and added: “There has been an upturn in volumes, and a major catch-up effect is expected once the health situation stabilises, as western countries will be seeking to rebuild their inventories”.
CMA CGM said it expected to return to “normal capacity as of mid-March” out of China, as it reactivates its network following the crisis....
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