CMA CGM reported Q1 revenues of US$4.013 billion, up 1.8 per cent over year-ago revenues. Consolidated net profits of $406 million were reported, a considerable increase over Q1 2014 profits of $97 million.

Volumes rose 10.5 per cent in the period to 3.1 million TEUs, principally resulting from increase in volumes on the East-West trades, particularly to and from the United States where volumes enjoyed sustained growth, and also from the launch of the Ocean Three Alliance. The Group reaped the rewards of its operating efficiency and cost discipline as well as the sharp drop in bunker prices (bunker costs per TEU down 36.5 per cent).

The Group continued to actively optimize its route structure, initiating five new routes in the U.S. and extending its agency network up to 655 agencies in over 160 countries.

CMA CGM continued to strengthen its financial flexibility while pursuing controlled expansion to deliver further growth. Adjusted net debt fell by 10.3 per cent, chiefly due to the favourable impact of the $/€ exchange rate and to the increase in the Group’s cash available. Consolidated adjusted net debt now represents less than half consolidated adjusted equity. This balanced financial strategy was recently recognized by Moody’s, which raised the Group’s credit rating to B1 with a stable outlook.

On 31 March, CMA CGM took delivery of CMA CGM Kerguelen, its first 17,722 TEU vessel designed to be used on Asia-Europe routes. Another five similar-sized vessels will also be delivered this year, along with six vessels with a capacity of 9,400 TEU and three vessels with a capacity of 2,100 TEU. The CMA CGM fleet will be further strengthened in 2016/2017 following confirmation of its acquisition of three 20,600-TEU vessels to be delivered in 2017.

The Group obtained the 30-year concession for the container terminal in Kingston (Jamaica).

CMA CGM LOG, the Group’s logistics subsidiary, continues its expansion. On 30 April, the subsidiary announced that it had acquired LCL Logistix, a logistics leader in India, enabling it to accelerate its development in this fast-growing market. On 11 May, CMA CGM LOG signed an agreement under which it will manage a logistics platform in Cuba.

The company reports that spot freight rates for Asia-Europe trades have been volatile since the Chinese New Year, with volumes remaining sluggish. Routes to and from the U.S. continue to perform well.