French container shipping group CMA CGM has said it has put in a "resilient operating performance" in the first three months of the year despite making a loss.
The world's third largest container shipping operator said its carried volume grew by 13.4 per cent year-on-year to 2.6 million teus in the first quarter of 2012, while consolidated revenue increased by 2.6 per cent to $3.6 billion during the period.
The group admitted that the first quarter was particularly difficult for the maritime container shipping industry. In a statement it said: "In a market shaped by persistent overcapacity, freight rates fell to new lows during the period, while oil prices climbed sharply until mid-March, with Rotterdam bunker prices rising to nearly $720 a ton.
"In response to these challenging market conditions, CMA CGM continued to implement its cost reduction plan, which delivered $96.5 million in savings over the quarter, above initial target.
"CMA CGM also successfully deployed the operational agreements in partnership with MSC on the Asia/Northern Europe trades and with Maersk on the Asia/Mediterranean lines.
"Despite these efforts, CMA CGM reported an EBITDA of -$31 million and a net loss of $248 million for first-quarter 2012, which nevertheless represents one of the best financial and operating performances in the container shipping industry for the period."
The group expects strong improvement during the second quarter as the market has rebounded with several freight rates increases. Over the same period, oil prices have decreased significantly, with heavy fuel oil falling close to $560/ton in Rotterdam at the beginning of June, more than 20% below the March peak.
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