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CMA CGM EMBARKS ON COST CUTTING PROGRAMME

Thursday, May 30, 2019 

The CMA CGM Group has undertaken a number of strategic moves in recent months, including the acquisition of CEVA Logistics and regional short-sea players such as Mercosul and Containerships and the modernisation of its fleet.

To adapt to the changing market, the Group is now taking a new step in its transformation by consolidating its development and implementing ambitious cost reduction measures.

CMA CGM Group now holds 99.4% of CEVA's equity. The Group is resolutely committed to CEVA's financial recovery, and has already taken major structural decisions paving the way for CEVA’s rapid return to profitability, with a new, stronger governance structure under CEO Nicolas Sartini who is tasked with implementing CEVA's turnaround plan and returning it to profitability. A CEVA operations centre will be set up in Marseilles.

CMA CGM Group continues its 'Agility' plan to improve overall operational performance, with a strengthened savings target of US$ 1.2 billion. Since its launch in 2016, this plan has already achieved savings of US$ 245 million, through rationalisation, greater operational efficiency, lower logistics costs, new partnerships with suppliers, and the implementation of innovative technical solutions on board ships to reduce energy consumption and carbon footprint.

The APL and ANL lines will be rationalised. CMA CGM, the Group's global brand, will be the only carrier in the Transatlantic, Asia-Europe, Asia-Mediterranean, Asia-Caribbean and Europe-India/Middle East markets. APL will focus on Transpacific, in which it plays a key role, Asia-Indian Subcontinent where it will be the Group's only brand, Intra-Asia, with CNC, Asia-Oceania, and the US Flag services. ANL will remain the lead brand for Oceania.

The CMA CGM Group will continue to monitor current geopolitical tensions and oil prices, and their impact on the world economy. With the measures adopted and investments made, the Group is set to proceed with its transformation, strengthen its performance, accelerate its profitable development for the years to come, keep adjusting its offering and propose to its customers a tailored end-to-end service that meets their expectations.

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