31MAY2019 - NEWS - CMA CGM ups cost-cutting intensity, streamlines routes

CMA CGM is in the midst of a large-scale cost-reduction effort which involves reducing the number of lines it operates. 
The "Agility" cost-reduction plan, first implemented in 2016, is intensifying in 2019, according to a press release. Through line rationalizations, "greater operational efficiency, lower logistics costs, new partnerships with its suppliers, and the implementation of innovative technical solutions on board its ships to reduce their energy consumption and carbon footprint," CMA CGM has so far saved $245 million. New line rationalizations will go into effect October 1. 
The container line lost $43 million in the first quarter despite a 36.9% bump in revenue and a 4% uptick in volume. The losses are largely due to CMA CGM's acquisition of CEVA Logistics, which it completed last month. CMA CGM CFO Michel Sirat confirmed to Reuters he plans to bring CEVA to break-even status by the end of the year. 

Published by Editor - www.Livebunkers.com at 31-May-2019 02:55:40 [UTC] , contact editor at editor@livebunkers.com