CMA CGM to Order 20,600 TEU Trio

PARIS, March 30 (Reuters) – France’s CMA CGM, the world’s third-largest container shipper, introduced on Monday plans to order three large vessels and mentioned larger volumes and revenue final 12 months confirmed its concentrate on economies of scale was bearing fruit.

Like market chief Maersk Line, the family-owned agency has been making an attempt to trip out overcapacity and low freight charges through the use of bigger, extra environment friendly ships coupled with vessel-sharing alliances.

CMA CGM was finalising the order of three vessels, every with a capability for 20,600 20-foot containers, from South Korea’s Hanjin Heavy Industries & Construction Co to deploy on its major Asia-North Europe route from the third quarter of 2017, Vice President Rodolphe Saade informed reporters.

He declined to reveal monetary particulars however mentioned the ships, CMA CGM’s greatest ever, could be wholly-owned.

“Currently, our (Asia-North Europe) fleet is equipped with heterogeneous vessels and with these three ships we will have a more standard size for the fleet,” he mentioned on a convention name.

Greater effectivity, supported by new vessels and alliances, helped the group decrease its unit prices by 4 % final 12 months, Saade mentioned, stressing that decrease gas costs solely accounted for one third of the fee discount.

The group recorded an 8.1 % rise in volumes final 12 months, outperforming market development of about 5 % and supporting recording gross sales of $16.7 billion, he mentioned.

The working margin rose 1 level to five.8 % whereas group web revenue elevated 43 % to $584 million.

CMA CGM anticipated to proceed to outperform international market quantity development that ought to keep at 5 % this 12 months, he mentioned, including the group may beat its personal efficiency from 2014.

“We expect 2015, if the current trend continues, should be better than 2014 both in terms of profits and volumes.”

The group can even take supply of 16 new vessels this 12 months and an additional 11 in 2016 earlier than the arrival of the three large ships, Saade mentioned.

The group can also be trying to profit from the deliberate enlargement of the Panama Canal and intends to make use of a container port within the Jamaican capital Kingston as a regional hub.

CMA CGM will subsequent week signal an settlement with the Jamaican authorities after just lately profitable a 30-year concession to function the port on the Caribbean Island, Saade mentioned.

(Reporting by Gus Trompiz; Editing by Andrew Callus and David Evans)