Freight Rates Hit CMA CGM
PARIS, Nov 20 (Reuters) – France’s CMA CGM, the world’s third-largest container delivery agency, stated freight charges ought to get well subsequent yr after a market downturn led to a pointy fall in its third-quarter income.
“Freight rates are expected to remain weak in the fourth quarter of 2015. The market should rebalance during 2016,” family-owned CMA CGM stated in its third-quarter outcomes assertion on Friday.
The slide in freight costs has added stress on a delivery sector grappling with overcapacity and CMA CGM, like container delivery market chief Maersk Line, has tried to make use of bigger ships and consolidation to experience out the downturn.
Both corporations are in preliminary discussions with Neptune Orient Lines Ltd (NOL) a couple of potential acquisition of the Singapore-based container liner, NOL stated this month.
CMA CGM’s core earnings earlier than curiosity and tax fell 36.5 p.c from the third quarter of final yr to $158 million, whereas consolidated web revenue, group share, dropped by 74.8 p.c to $51 million, it stated.
Revenue was down 9 p.c at $3.977 billion, with the corporate saying a 3.4 p.c rise in volumes carried assist restrict the gross sales decline.
It didn’t give steering for its full-year outcomes however stated it anticipated to “continue to outperform the industry average going forward.” (Reporting by Gus Trompiz; Editing by Susan Fenton)
(c) Copyright Thomson Reuters 2015.
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