Wednesday, November 18, 2009

CMA CGM Shipping Predicts Recovery in Profitablity

New Optimism for French Freight Line
Shipping News Feature

FRANCE – In a statement issued today the French shipping line CMA CGM has predicted that the group is expected to return to the break even point in December 2009. The company states that it’s new optimism is based upon a number of key measures and reforms that they have been carrying out as well as a recovery in tonnages.

CMA CGM state that by closing secondary lines to concentrate volumes on the main lines and expanding on their strategic shipping partnerships they have been able to improve the quality of their services and reduce costs.

Furthermore, they predict that by soon extending “super eco speed” to all ships on ocean-going lines, the Group will further reduce fuel consumption by the end of the year, thus saving tens of millions of dollars.

The group state that: “The Asia / Northern Europe lines, which account for nearly a quarter of the volumes transported by the Group, have returned to profitability since October 2009.

“The Group’s other lines are expected overall to reach the breakeven point by the end of 2009."

According to Nicolas Sartini – Senior Vice President, Asia-Europe Lines: “Thanks to its modern fleet and the drastic measures initiated in every sector of the company and with the economy showing signs of improvement, the CMA CGM Group is well-positioned from an operating standpoint to return to profitability in 2010.”