Increased rates and a major boost in demand during the second half of 2020 have led CMA CGM, like the vast majority of the container shipping lines, to improvements in profits during the last year despite the overall decline in container volumes due to the Covid-19 outbreak.
The French shipping group has reported average revenues per TEU of US$1,154, which translates to a year-on-year 6.8% increase, which led to an annual revenue growth of 4% compared with 2019, totalling US$24.2 billion for shipping.
Although CMA CGM saw its transported volumes decrease by 2.7% compared with the previous year, it has improved the profitability in all its business activities with the revenue for the fiscal year 2020 rising by 3.9% compared with 2019 at US$31.5 billion.
Additionally, in 2020, CMA CGM Group posted US$1.75 billion in net profit, compared to a loss of US$229 million in 2019. “This performance reflects the robust momentum of international trade and the effectiveness of the cost control plan initiated by the Group,” said the company in its announcement.
Rodolphe Saadé, Chairman and chief executive officer of the CMA CGM Group has emphasised that the digital transformation process of the company and the synergy between its shipping and logistics solutions with CEVA Logistics have proven to be “key assets” to manage the corona crisis during 2020.
In particular, CEVA continues its turnaround and is in line with the trajectory outlined in its transformation plan, according to the announcement, with revenues climbing to US$7.4 billion and earnings before interest, taxes, depreciation, and amortisation (EBITDA) reaching US$609 million, representing increases of 3.1% and 11.9% respectively.
In the meantime, the French fleet of vessels reduced its overall emissions by 4% compared to 2019, according to the statement. Compared to 2008 carbon emissions, the Group has announced a 49% reduction of its CO2 emissions, in line with its objective of achieving a 50% cut in carbon emissions by 2030. “This reduction is fully aligned with the Group’s target of becoming carbon neutral by 2050 and increasing the share of alternative fuels consumed to 10% by 2023,” added the carrier.
CMA CGM has ordered new LNG-powered vessels to enlarge its eco-friendly fleet. “We are growing our fleet of vessels with the delivery of 13 additional LNG-powered container ships,” pointed out Saadé.
The Marseille-based line is optimistic for the current year, believing that the increase in demand noted since last summer will continue at a steady pace at least throughout the first half of 2021.
Source : Container-News
