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CMA CGM carrier Sea Cargo Service

Decline in Oil Prices Led CMA CGM Carrier Sea Cargo Service Record Good Profits in Q2

It is reported from recent sea cargo news that CMA CGM carrier cargo service recorded remarkable profit growth in the second quarter this year. If this net profit is compared with previous year records, 67 percent increase is seen profits with 156 million dollars. The net profit gained CMA CGM cargo service is mainly due to the sharp decline seen in fuel prices this year. Net profit gained this month helped to overcome the fall of 7.8 percent recorded in its average freight rate. CMA CGM carrier is excited about the results, as expected they are depicting the company’s strength and the business plan adopted by it. Even though there is sharp decline seen in rates, carrier cargo service handled the situation well recording awesome profits. It is reported that every year, a considerable hike is seen in volumes by 6.2 percent with 3.3 million teu despite 2.1 percent decline seen in overall turnover with 4.1 billion dollars. For the first half of the year, carrier cargo service recorded good growth by 8.4 percent with 6.4 million teu. This year even revenue of CMA CGM carrier cargo service is static in condition recording 8.1 billion dollars while there was 7.7 percent decline seen for the same period last year recording 1,266 dollars per teu.

CMA CGM carrier was a member of alliance named as ‘Ocean Three’ which include UASC and CSCL cargo services. It is noticed that about 12.9 percent of complete cargo load distributed among this alliance is carried out by CMA CGM cargo service. This year, 487,000 volume hikes is seen in carrier service which is mainly due to the introduction of new container capacity on east-west routes by which carrier container capacity increased by 7.9 percent. For the first half year, the net profit recorded by CMA CGM was 574 million dollars, which is clearly high compared to last year net profit recorded as 204 million dollars for the same period. Fall of dollar value against Euro by 26 percent and 33 percent decline in bunkers cost are reasons aiding for great net profit recorded this year. CMA CGM carrier cargo service felt the need of continuing import-export operations further, despite second quarter results of Hapag-Lloyd dropped by 31 million dollars from 145 million dollars recorded in the first half. Hapag-Lloyd felt disappointed about their drop out which made the CMA CGM service learn from it. Moreover, it is tough phase for carrier companies as market is shrinking day by day with continuous decline seen in trade lanes and new GRI’s coming into play from September month which is not fixed any length of time. So in such tough phase, it is unable to expect the sustainable conditions of the market which may or may not support the growth of cargo services.

Rolf Habben while participating in German Carrier’s results presentation said that they are thinking to concentrate more on revenue quality by making the carrier companies more responsible towards spot market. This year, Maersk ranked first in container line recording 507 million dollars profit in Q2 whereas CMA CGM ranked as third biggest container line. Though, the carrier company ranked third achieved a better percentage of invested capital which is 14 percent of total capital compared to Danish line. Apart from these, the company gained 30-year concession for operating Jamaica and Kingston container terminal aiding towards the expansion of Panama Canal next year.

Source From: http://theloadstar.co.uk/cma-cgm-gives-thanks-for-low-oil-price-as-profits-soar-in-q2-despite-tumbling-rates/