France's CMA CGM predicts a continuing recovery in container shipping trades.
The shipping division saw a $213m improvement in its results in the second quarter, largely on the back of a stronger freight market and lower charter costs.
Net income for the division rose to $145m in the three months to the end of June, compared with a $68m loss in the same period last year.
Volumes carried dropped by 13.3% to 4.78m teu, but that was less than a previously feared 50% reduction as a result of coronavirus.
Adaption
Chairman and chief executive Rodolphe Saade expects the recovery to continue in the third quarter and said CMA CGM had been able to adapt its liner services to meet demand.
"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," he said.
"We have also significantly reduced our costs and benefited from the drop in oil prices."
Transpacific surge
The liner operator is benefiting from a big surge in transpacific volumes.
Container volumes rose as US customers spent more on imported goods and less on services.
The line also benefited from a switch of cargoes from air to sea carriage, enabling it to cash in on the expansion of volumes by launching new services.
One was the Eagle Express X (EXX) service operated under the APL brand since May with five 5,000-teu containerships.
The company also benefited from a reduction of charter costs as vessels on short-term charters were redelivered.
Positive outlook
Stronger volumes and firmer freight rates since April are expected to continue, helped by the growth of e-commerce and normal seasonal factors.
The CMA CGM Group reported net income of $136m for the second quarter, compared with a $109m loss in the previous corresponding period.
Its CEVA Logistics division reported a $1m loss. But Saade said the turnaround plan for CEVA was "underway and in line with our expectations".
