Q2 container volumes fall 13% on year; recovery likely in Q3: CMA CGM
8th September 2020 03:46 GMT

Container volumes at French carrier CMA CGM declined 13.3% on the year in the second quarter, as coronavirus-related lockdowns shut production units, the company said in a statement.

“Container traffic volumes decreased for the first time since 2009 as a result of lockdown measures in several countries. This resulted in the shutdown of production units, in particular in China, during the first quarter. This was then followed by a sharp downturn in global consumer demand in March and April,” the company said in its earnings statement Sept. 4.

Lower container volumes dragged quarterly shipping revenue, which fell 9.7% to $5.3 billion. The shipping EBITDA, however, was higher by 27.7% on the year.

“Although transported volumes by the ocean division were notably lower than last year, the financial impact on COVID-19 during the first half year 2020 has been contained thanks to the combination of supportive unit revenue dynamics in the ocean division as well as lower bunker expense and voluntary cost reductions across the group,” the company said.

For the six month period, shipping revenue was reported at $10.7 billion, down 6.1% on the year.

Going ahead, the third quarter results should mark a new improvement, the carrier said.

The recovery in container shipping seen since April should continue during the third quarter of 2020 for most routes, driven by faster recovery in the consumption of goods than of services, the growth of e-commerce, and usual seasonality, it said in the statement.

Platts ,
8th September 2020 03:46 GMT