FRENCH
shipping giant CMA CGM Group has
posted a net
loss of US$229 million for 2019,
compared with a profit
of $34 million in 2018.
The French transport group's
result was dragged down by the
$329 million negative impact of new accounting rules on vessel time charters and a
$140 million loss by Ceva Logistics.
However, the world's
fourth-largest container shipping firm remains bullish about its liner trade
outlook and its ability to turn around the loss-making logistics arm, despite
the adverse effect of the coronavirus outbreak on Chinese exports, reports The Loadstar, UK.
Turnover at the group soared 29
per cent on the previous year, to $30.3 billion, boosted by $7.1 billion in
revenue from Ceva.
Container
liftings on its fleet of 502 vessels increased by an above-industry par of 4.1
per cent, to 21.6 million TEU,
which CMA CGM attributed to growth in its shortsea business, "strong
growth" in intra-Asia and "organic growth" in the African and
Latin American trades.
"After an extremely robust
January, the early part of the year has been marked by the Covid-19
crisis," it said, and added: "There has been an upturn in volumes, and
a major catch-up effect is expected once the health situation stabilises, as
western countries will be seeking to rebuild their inventories".
CMA CGM said it expected to
return to "normal capacity as of mid-March" out of China, as it
reactivates its network following the crisis.
Chairman
and chief executive Rodolphe Saade
tweeted: "I observe an upturn of the economic activity in China; 80 per
cent of the manufacturing units are again operational. And every day, more
open. We are anticipating a rebound in volumes related to restocking."
Indeed, the Ocean Alliance has reinstated some blanked sailings this month,
after an earlier-than-expected recovery in manufacturing and trucking. A
carrier source told The
Loadstar last week it had
been "pleasantly surprised" by the firm booking forecasts for the
coming weeks.
"Cargo is coming back
onstream much earlier than we had expected in China, so we will be rehashing
the number of loaders for the second half of March," he said.
Meanwhile, CMA CGM is persevering with
its goal of turning the Ceva acquisition from a negative asset to a positive
for the group.
In its "second-phase
turnaround plan" for the logistics business, it said it was "pursuing
its strategic transformation plan, aimed at delivering strong revenue growth
combined with a significant improvement in its profitability".
Source : HKSG.
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