APL, which CMA CGM acquired in June 2016, contributed positively to the French ocean carrier’s first quarter financial results, according to CMA CGM Group CEO Rodolphe Saadé.
French ocean carrier CMA CGM Group reported a net income of $86 million for the first quarter of 2017, compared to a loss of $100 million for last year’s first quarter, according to the company’s most recent financial statements.
Revenues totaled $4.62 billion for the quarter, up 35.9 percent year-over-year.
“The increase of average revenue per container carried led overall revenue to rise faster than volumes,” CMA CGM said of the strong revenue growth.
During the quarter, CMA CGM transported 4.3 million TEUs, up 34.2 percent year-over-year.
“For the first time and less than a year after its acquisition, APL has contributed positively to our group’s results,” CMA CGM Group CEO Rodolphe Saadé said. CMA CGM assumed control of Neptune Orient Lines and APL, its container shipping subsidiary, on June 10, 2016.
During the first quarter of 2017, Jacques R. Saadé, founder of the CMA CGM Group, stepped down from his post as chief executive officer, naming his son, Rodolphe Saadé, as his successor; and CMA CGM signed a memorandum of understanding with the e-commerce marketplace Alibaba to build digital connections between the companies.
On April 25, Rodolphe Saadé signed a joint-venture agreement with the ADANI group to operate a new container terminal in Mundra, India.
CMA CGM was previously a member of the Ocean3 Alliance with United Arab Shipping Company, along with China Shipping Container Lines, which has since been combined into China COSCO Shipping.
However, since the beginning of last month when a new group of alliances set sail, CMA CGM has been operating as a member of the OCEAN Alliance, which also includes APL, Orient Overseas Container Line, China COSCO Shipping and Evergreen Line.
According to Ocean carrier schedule and capacity database BlueWater Reporting, the OCEAN Alliance deploys 143,922 TEUs per week from Asia to North America, surpassing the other two major east-west vessel sharing agreements, the 2M Alliance and “THE” Alliance; and 84,588 TEUs per week from Asia to North Europe, trailing behind the 2M Alliance, but still ahead of “THE” Alliance.
CMA CGM rights the ship in Q1
