Record revenue for maritime transit firm, CMA CGM Group, has been documented for calendar year 2018.
CMA CGM’s annual revenue increased 11.2 per cent to a record level of US$23.5bn during the 12 months to 31 December. In the fourth quarter of 2018, revenue increased 14.9 per cent to 6.3bn.
Total volumes carried rose 9.3 per cent, exceeding 20m TEUs for the first time. The group put this increase down to improvements to its Transpacific, India/Oceania and Africa lines.
“In 2018, in a difficult environment, the group posted a sharp rise in volumes and a record revenue of nearly US$23.5bn. Despite an increase in oil prices, our recurring EBIT margin remains considerably above the industry average,” Saade said.
The company made a number of strategic developments last year including an investment in digitisation, developing IoT and artificial intelligence as well as partnership agreements in blockchain technology.
A major hindrance in progress was the price of fuel, which rose some 33 per cent, impacting its core EBIT.
Saade said the group is pursuing innovation and digital transformation strategies to further strengthen its service and performance.
“In 2019, despite persisting geopolitical tensions, trade perspectives are positive,” he noted.
“We will continue our development with the objective of improving profitability. That is why we are launching a new US$1.2bn cost reduction plan.
As well as the $1.2bn global cost-saving strategy the group has recently launched a public tender offer on CEVA to develop a logistics offer complementary to the transport offer.
The tender is part of a new strategic partnership plan for CEVA, developed jointly with CMA CGM who hold an equity stake of 33 per cent.
It will allow CMA CGM option to complement its offering with CEVA solutions, and vice-versa, creating a complete range of logistics services spanning the chain. It will also integrate the company’s freight forwarding into CEVA’s and allow a cost reduction through the pooled operations.
CMA CGM said the move represents a major transformation that will make the CMA CGM Group a world leader in both transport and logistics, comprising 100,000 employees and more than US$30bn in revenue.