The number three
ocean carrier CMA CGM while issuing its second quarter results has confirmed
the order for nine megaships, citing signs of market recovery after a long
slump. In the business update, it said: "In order to keep pace with market growth and the Group's needs,
the Board of Directors of CMA CGM has approved the order for nine container
ships of 22,000 twenty-foot equivalent (TEU). This order, of which the first
ships will come into service from the end of 2019, will further reduce unit
transport costs, particularly on the Asia-Europe routes.”
And the order
has already been confirmed by Hudong-Zhonghua
Shipbuilding and Shanghai Waigaoqiao Shipbuilding, which have signed LOIs for
the mega-vessels at favorable prices.
The order, the firm said, would help cut transport
costs particularly on Asia-Europe routes enabling to keep pace with the market
Maerk Line also has said that the fundamentals were at
their strongest since 2010.
CMA CGM said a recent upward trend in
freight rates had led it to expect higher second-half operating profits
compared with the first half, excluding significant variations in fuel costs
and exchange rates.
CMA CGM reported a profit of $470 million for the second quarter, nearly
double the first quarter's results and an improvement of $550 million over the
same period last year. The boost came from a significant increase in shipped
volumes and revenue per container – up 33 percent and 12 percent respectively. APL, which was consolidated in June 2016 in CMA CGM’s
biggest ever acquisition, also remained profitable in the second quarter, with
a $137 million contribution to group operating profit.