mai hien


APL is 'back in black' a year after becoming part of CMA CGM
Tuesday, 05 December 2017 03:46

IT has been just over a year since French shipping giant CMA CGM took full control of Singapore-headquartered container shipping line APL in September last year.

In the twelve months there's been a dramatic turnaround with APL notching up an interim profit this year, a first since 2010 and remain on track for a profitable full year.

Nicolas Sartini, a 25-year veteran with CMA CGM, has been overseeing the integration of APL as the line's CEO. He is the perfect man for the job having also been at the helm of other CMA CGM acquisitions in Asia Pacific in recent years, including ANL and Cheng Lie Navigation.

"The results stem in part from a market uptick, but more importantly from a combination of cost management - leveraging scale synergies with the group - and APL's revenue focus," Mr Sartini said.

As part of a larger group, APL now has access to an enlarged fleet of 445 vessels with a combined capacity of 2.2 million TEU.

While the APL brand remains - it has had a slight tweak to reflect its CMA CGM linkage - the Singapore company is able to cut costs by leveraging economies of scale from its parent.

"To lock in cost synergies, CMA CGM Group has combined its operations, office footprints and support functions, and leveraged on the scale of the group to lower vendor cost through joint procurement," Mr Sartini explained, before adding: "However, on the front-line, nothing has changed as APL still operates as a standalone brand under the group. We have our own dedicated front office, sales force and customer services as well as APL independent suite of products and services."

It is noteworthy that since the integration with the Marseille container shipping giant, APL has seen 100 per cent customer retention, Singapore's Splash24/7 reported.

CMA CGM's capture of APL has been just one chapter in a dramatic couple of years of consolidation for the container sector, a phase Mr Sartini believes is yet to close.

"Container shipping is headed into a period of renewed focus on profitability as we have seen a healthy growth in volume and more discipline in the market," he said.

"The ongoing consolidation will ultimately lead to healthier survivors, but the process has not finished yet and we are not out of the woods as an industry, with many of the 12 carrier groups still not back in the black."

 
Zim's record peak season volume lifts result in major turnaround in profit
Monday, 04 December 2017 02:24

ISRAEL's Zim Integrated Shipping Services recorded an adjusted profit of US$36.2 million in the third quarter, taking the carrier to a $51.3 million nine-month profit, a significant turnaround from the $151 million loss in the same period of last year.

Total revenue in the third quarter soared by almost 30 per cent to $817 million as the carrier transported 688,000 TEU from July through September, a record quarterly volume that was up 10.6 per cent year over year. Adjusted EBITDA was $89.2 million in Q3 compared to $10.5 million in the same quarter last year, according to IHS Media.

ZIM president and CEO, Eli Glickman, said ZIM's third quarter results were a cause for optimism, and he hoped the momentum could be maintained through the next few quarters.

"However, we still face many challenges, including the uncertainty of market conditions, freight rates and bunker prices," he said. "I believe we are on the right track as we continue to outperform the industry."

In its third quarter earnings report, ZIM said the industry was beginning to stabilise after the alliances were reshaped in April and the M&A activities that took place over the last few years and it was benefiting from a positive trend being seen in container shipping over the last four quarters.

The carrier's significant growth in revenue during the three quarters mirrored that of the other container lines, with more boxes being transported at higher rates. The average freight rate per TEU was $1,008, up 12.2 per cent compared to $898 in the comparable period of 2016.

ZIM carried 1.9 million TEU in the first nine months, an increase of 7.1 per cent year over year. The carrier's net profit for the January-September period was $21.1 million compared to a net loss of $168 million in 2016.

 
Hapag-Lloyd says no to containership newbuilding orders
Wednesday, 29 November 2017 02:20

Following its takeover of UASC German container line Hapag-Lloyd is putting newbuilding orders on hold for the next few years.

In its nine months earning report Hapag-Lloyd reported a net profit of EUR54.3m for the third quarter of 2017 compared to EUR8.2m a year earlier. Revenues for Q3 2017 were EUR2.8bn up from EUR1.95bn in the same period in the previous year.

The company said that the integration of UASC was proceeding as planned after the takeover was finalised on 24 May this year.

“Following the completed takeover of UASC’s container shipping activities, Hapag-Lloyd will not invest in any more new ship systems in the next few years,” the company said in its third quarter financial report.

“The joint fleet should make it possible to utilise the medium-term expansion opportunities resulting from market growth and to realise economies of scale in ship operations. The plan is to make further optimisations in this area in the future with regard to age and efficiency.”

The integration of UASC took Hapag-Lloyd into the so-called megamax containership bracket with a series of 18,800 teu boxships. However, while rivals CMA CGM and MSC have returned to the yards with in the 22,000 teu range Hapag-Lloyd is opting to stay out of the latest round of vessel upsizing.

The company currently has no newbuildings on order having taken delivery of its last 15,000 teu vessel on 28 September this year, the final newbuilding from the merger with UASC.

 
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