CMA CGM has become the latest liner operator to unveil a hefty loss in the first quarter of the year.
The French containership player reported a consolidated net loss of $43m for the first three months of 2019, compared with a loss of $77m in the previous corresponding period.
But the Marseilles-based company has shrugged off the loss by unveiling a turnaround plan designed to make cost- savings of $1.5 billion.
The Saade family has also given a new role to a trusted lieutenant to help them return its newly acquired logistics division CEVA Logistics to a profit this year.
Long-time CMA CGM stalwart Nicolas Sartini will be installed as CEVA chief executive from June, some three years after he was tasked with the same role at Singapore-based APL.
He will work alongside CEVA’s new chairman Rodolphe Saade to oversee a shift of CEVA’s operational base from Switzerland to Marseilles.
The division will be staffed by 200 employees, most of whom will be transferred from CEVA’s offices in Baar, Switzerland.
CMA CGM has this year acquired 99.4% of CEVA Logistics.
The moves are part of the strategic transformation of CMA CGM which wants to position itself as a global shipping and logistics company.
The liner operator has set itself the higher goal of attain $1.5 billion of cost savings, up from an original target of $1.2 billion just two months ago.
Those savings will partly be be helped by the rationalisation of some of CMA CGM’s liner shipping brands.
CMA CGM plans to operate under its own name in the Transatlantic, Asia-Europe, Asia-Mediterranean, Asia-Caribbean and Europe-India/Middle East markets.
Singapore-based APL will focus on the Transpacific, Asia-India Subcontinent and a few other trades including US-flag services, while ANL will remain as CMA CGM’s brand for Oceania region.
CMA CGM said that the acquisition of CEVA lifted CMA CGM revenues by 37% to $7.41bn, with an additional $1.7bn coming from the logistics operation.
It highlighted concerns going forward including geopolitical tensions, the evolution of oil prices, and the impact on the economy.
