The savings plan applied throughout all segments of the Group, combined with increasingly firm volumes and rates, is already producing its initial effects. The recovery of operating profit illustrates the shipping expertise of the CMA CGM teams, which have been entirely focused on achieving this objective.
The key measures introduced are the following:
- Closing of secondary lines to concentrate volumes on the main lines, allowing the Group to take advantage of strategic vessels; - An increase in strategic shipping partnerships with the twofold aim of improving service quality and rationalizing operating costs;
- Redelivery of chartered ships;
- Reduced logistics expenses and port expenditures;
- Optimized capacity in line with transport demand on all the Group’s lines.
Furthermore, 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.
Finally, a rebound in cargo rates has been observed on most of the lines: Asia – Europe, Asia – Mediterranean, Asia – South America.
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."