CMA CGM reported strong profitability in all its business activities during the second quarter of 2020 despite a pandemic-related 13% decrease in container volumes carried.
Average revenue per teu was up by 3% to US$1,112 aiding the carrier’s financial performance, while unit cost by teu dropped 5% to US$892 due to the decline in oil prices, the group’s cost-cutting initiatives and the reduction in the fleet of vessels and containers deployed.
Rodolphe Saadé, chairman and CEO, CMA CGM Group, commented: “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 benefited from the drop in oil prices. CEVA Logistics’ turnaround plan is underway and in line with our expectations.”
Container traffic volumes decreased for the first time since 2009 as a result of lockdown measures in several countries, which resulted in the shutdown of production units, particularly in China, during the first quarter. This was followed by a sharp downturn in global consumer demand in March and April.
CMA CGM expects the recovery in container shipping, seen since April, to continue during the third quarter of 2020 for most routes, driven by faster recovery in the consumption of goods than of services, the growth of e-commerce, and usual seasonality.