Net loss of CMA CGM increased to 452 million USD in 2016

CMA CGMThe net loss of the container line CMA CGM amounted to 452 million USD in 2016, despite the increase in traffic volumes and revenues, which was offset by the backdrop of unprecedentedly low freight rates. The volume transported by the carrier increased by 20% to 15.6 million TEU, which was mostly because of the acquisition of the container line NOL. Excluding the added volumes from Singaporean shipping operator the volumes dropped by 12.8 million TEU. The revenues of CMA CGM for the year increased by only 1.9%, as the profitability of operations per unit of TEU decreased by 13.6% compared to previous year.

However, the report notes a significant improvement in the market situation by the end of the year. For example, in the third and fourth quarters the average revenue per TEU increased by 2.9%. The revenue in the fourth quarter increased by 28% yoy.

In 2017, the group expects a significant improvement in its financial performance, hoping that the improvement in the market situation began at the end of last year and will continue, as well as the effect of the acquisition of NOL.

CMA CGM is the main member of the Ocean Alliance, whose members are also Cosco Container Lines, Evergreen Lines and Orient Overseas Container Lines. The company owns 119 vessels, out of 323 ships of the alliance. In total, the alliance will offer transportation on 40 routes, starting from April 1.