French container line CMA CGM’s consolidated net profit soared to $406 million in the first quarter from $97 million a year ago as the French carrier capitalized on efficiency gains, cost cuts and sharply lower bunker prices.
Net profit went up at CMA CGM by nearly 420% as the company optimized its network and began to reap benefits from the Ocean Three Alliance during the first quarter of 2015.
The world’s third largest container line handled 3.1 million TEUs during the given period, and the rise was attributed to the increase in volumes on the East-West lines, particularly to and from the US, where volumes enjoyed sustained growth, and also from the launch of the Ocean Three Alliance.
The company’s fleet capacity increased with further five 17,722 TEU, six 9,400 TEU and three 2,100 TEU boxships expected to be delivered this year. But fleet capacity growth did outpace volume increases, as the fleet grew by 13.4% in the year to 1.7m teu and volumes were up 10.5% to 3.1m teu.
The container line also opened five new routes in the US during the period, as well as extended its agency network to up to 655 agencies in over 160 countries.
The company’s consolidated revenue was up 1.8 percent, reaching USD 4.013 billion, due to increased operating efficiency, as well as a sharp drop in bunker prices, which fell 36.5 percent per TEU.