World News
CMA CGM Vessel Efficiency Boosts its Bottom Line
French container shipping group CMA CGM said Tuesday that the deployment of modern, efficient vessels offering significant economies of scale has helped it to a "solid operating and financial performance" in the third quarter of 2012.
Increases were seen in both container volumes and revenues, leading to a net profit of $371 million.
After depreciation and amortisation its operating margin stood at 13% for the quarter, which it said was the best performance announced in the industry.
For the three months ended September 30, 2012 the box carrier's revenues were up 9 percent on the period last year to $4.2 billion, while container volume rose to 2.7 million twenty-foot equivalent units (TEUs), versus 2.6 million TEU in the period last year.
CMA CGM said it had generated $550 million in savings over the first nine months of the year from the implementation of its cost savings action plan, a total "well ahead" of its objectives.
Freight rates also increased on every route during the period, it said, further improving its profitability.
Net profit for the first nine months now stands at $310 million and looking ahead, the Group says it expects to end the year with "a substantial profit."
Earlier in the month the company announced its new vessel and the world's largest by TEU capacity, CMA CGM Marco Polo, had begun its first voyage.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
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