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CMA CGM anticipates improvement in container trade

CMA CGM   French container shipping company CMA CGM has predicted a recovery for shipping, especially for transpacific routes, as the maritime industry continues to bounce back from the COVID-19 pandemic, which hindered growth at the start of 2020. CMA CGM announced a net income of $136 million in the second quarter of 2020, rebounding from a $109 million loss in the same quarter last year. Despite the positive news, its revenue of $7 billion is still 9% lower year-on-year as a result of the COVID-19 pandemic. In light of this news, CMA CGM is positive that the resurgence in container shipping will continue for most shipping routes in the next quarter, as a result of the rise of e-commerce, consumption of goods and seasonal increases. Thus, CMA CGM is bullish about the chance to improve its operating margin in the third quarter of this year. Commenting on the news, chairman and CEO of CMA CGM Rodolpho Saade said, “Despite the COVID-19 pandemic, our group reported excellent results during the second quarter, thus strengthening our financial structure. “Thanks to our agile business model and synergies between our shipping and logistics business activities, we were able to adapt our service offerings to meet our customers’ fast-changing needs. We have also significantly reduced our costs and benefitted from the drop in oil prices.” Unit cost by TEU (twenty-foot equivalent unit) in the second quarter of 2020 dropped by 4.6% to $892 from the same period last year, and is attributed to CMA CMG’s cost cutting measures, as well as a result of fewer ships and containers deployed. CMA CGM will continue to keep an eye on volatile goings-on in the global markets, but are still optimistic for its performance in the third quarter due to increasing shipping volumes and freight rates.   Source: Seatrade Maritime

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