TURNING around the fortunes of logistics company CEVA while also streamlining operations in Oceania are focal points for a series of changes announced by French shipping group CMA CGM.
The group has made strategic moves recently, including acquiring CEVA Logistics.
CMA CGM Group chair Rodolphe Saadé was recently elected chair of CEVA Logistics and Nicolas Sartini becoming chief executive from 1 June.
The group is now moving to implement what it says is an “ambitious cost reduction program” and implementing a “turnaround plan” for CEVA Logistics.
A CEVA operations centre is to be set up in Marseilles, centralising CEVA management and support functions and close to the CMA CGM headquarters.
Continuing with an “agility” plan to boost operational performance, the group announced in March 2019 a “strengthened plan” with a savings target of USD1.2bn.
“Since its launch, this plan has already achieved savings of US$245m, through the rationalisation of some of the group’s lines, greater operational efficiency, lower logistics costs, new partnerships with its suppliers, and the implementation of innovative technical solutions on board its ships to reduce their energy consumption and carbon footprint,” the company said in a statement.
Cost reduction is expected to occur by way of streamlining its organisation and maritime routes, including rationalising the APL and ANL lines
“The scope of these two major group brands will evolve as of October 1st, 2019, in order to strengthen the group’s overall performance and efficiency,” the company stated.
CMA CGM, the group’s global brand, is to be the only carrier in the Transatlantic, Asia-Europe, Asia-Mediterranean, Asia-Caribbean and Europe-India/Middle East markets.
APL is to focus on the Transpacific, Asia-Indian subcontinent where it will be the group’s only brand, Intra-Asia, with CNC, Asia-Oceania, and the US Flag services.
ANL is to remain the lead brand for Oceania.
“The new organizational setup will allow the group to simplify its offer, making it more legible to its customers, and benefit from the expertise of specialist companies from coherent regional groups, while reducing its costs,” CMA CGM stated.
According to information released to shareholders, volumes transported by CMA CGM in the first quarter rose by 4.4% compared with the first quarter of 2018.
Revenue per container increased slightly in the first quarter of 2019 compared with the 2018 first quarter.
“The CMA CGM Group is to continue to monitor current geopolitical tensions and the evolution of oil prices, and their impact on the world economy,” the company stated.