PARIS, March 7 (Reuters) – French-based CMA CGM, the world’s third-largest container delivery agency, stated on Monday it expects its quantity development to outperform the market once more in 2016 after sturdy enlargement final 12 months helped it cushion a slide in freight charges.

CMA CGM, which is within the strategy of buying Singapore’s Neptune Orient Lines (NOL) for $2.4 billion in its biggest-ever deal, has been pursuing economies of scale to trip out a delivery downturn linked to vessel oversupply and faltering financial development.

The Baltic Exchange’s important sea freight index has set a sequence of all-time lows in current months, earlier than rebounding sharply since February.

CMA CGM’s full-year gross sales had been $15.7 billion, down 6.4 % from 2014, as a 6.3 % improve in transported volumes was outweighed by the steep fall in freight charges, it stated in an announcement.

CMA CGM Full Year 2015 Results

Market estimates have put international development in container volumes final 12 months at round 1-2 %.

The group reported decrease working and web income however stated decrease gasoline costs and effectivity measures, which decreased its unit prices, helped preserve outcomes near 2014 ranges.

Core working revenue was down 6.4 % at 911 million euros, leaving its working margin unchanged at 5.8 %, whereas group web revenue was down 2.9 % at 567 million euros.

CMA CGM stated its quantity development final 12 months was supported by the launch of a vessel-sharing alliance with China Shipping Group and United Arab Shipping Co, in addition to enlargement on U.S. routes that allowed it to profit from an accelerating economic system within the United States.

Trade between Asia and the United States has change into a spotlight for CMA CGM. Its takeover of NOL, which can deliver it nearer to bigger rivals Maersk Line and MSC, will make it the market chief on trans-Pacific routes. (Reporting by Gus Trompiz; Editing by Andrew Callus)

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