CMA CGM, the world’s third largest container shipping company, reported consolidated revenues for 2013 of $15.9 billion, which was unchanged from 2012 revenues. Net profit improved from $332 million in 2012 to $408 in 2013, aided by a gain on the sale of the company’s 49 per cent of Terminal Link, its terminal activities subsidiary in June. Volumes rose by 7.5 per cent to 11.4 million TEUs, in a market where volumes increased by around 3 per cent over the year. The decrease in average revenue per TEU was held to 7.1 per cent, which was less than the decline in the corresponding Shanghai Containerized Freight Indices (SCFI). Volumes rose by 7.5 per cent to 11.4 million TEUs, in a market where volumes increased by around 3 per cent over the year.
CMA CGM reduced costs per TEU by 5.3 per cent, increasing its operating margins to 4.8 per cent, one of the highest in the industry.
Outlook
Although overall container shipping volumes are expected to increase by 4 to 5 per cent in 2014, and despite an initial upturn in freight rates at the beginning of the year, the Group believes that rates will remain under pressure throughout the year given the persistent mismatch between supply and demand. CMA CGM plans to deploy a strategy of combining financial discipline and assertive marketing, which it believes should enable it once again to deliver better operational performance than its peers.