The world's third-largest container shipping line still needs an urgent restructuring of its debts and supplier contracts in spite of returning to profit on a key route, a senior executive has said.
Nicolas Sartini, head of Asia to Europe routes for Marseilles-based CMA CGM, accused some shipowners of making "indecent" profits and defended its demand they reduce the fees they charged.
CMA CGM, privately owned by the family of Lebanese-born Jacques Saadé , is the largest of many container lines to announce plans to restructure its debts and other obligations following the sector's worst-ever crisis.
Shipping volumes are expected to fall by about 10 per cent this year, while the rates lines can command per container are about 50 per cent below 2008 levels on some routes.
CMA CGM in September set up a creditor group for debt restructuring talks, including banks from Asia, where many of CMA CGM's significant order book of new ships is being built.
The line, which made losses before interest and tax of $515m on $4.8bn sales in the first half, is far more optimistic than other lines. Singapore's Neptune Orient Lines announced in October it expected to keep making losses at least for the first half of 2010 .
Mr Sartini said CMA CGM had returned to profit on Asia-Europe services - the most important long-haul route - after three quarters of losses.
"This good recovery in terms of freight rates and volumes is putting us in the black in this sector for October," Mr Sartini said. "The signal we have seen in the market . . . is leading us to the anticipation of close to break-even numbers for December 2009 for the whole of CMA CGM activity."
However, a restructuring remained necessary.
"The losses have been quite high, at a time when we have also been investing in downpayments for new vessels," he said.
The restructuring includes demands for owners of ships chartered by CMA CGM to cut their fees - to some owners' irritation. The shipping line itself had suffered from customers seeking to negotiate down prices, Mr Sartini said.
"Our customers are not caring one second about our profit and are putting us under pressure," he said. "The owners of the vessels we are referring to, maybe they are making indecent profits. We need to negotiate with our charterers to see what we can do to get through the worst crisis in container shipping."
CMA CGM now expects to announce an agreement with its creditors in mid-December, rather than mid-November as originally planned.
Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
Nicolas Sartini, head of Asia to Europe routes for Marseilles-based CMA CGM, accused some shipowners of making "indecent" profits and defended its demand they reduce the fees they charged.
CMA CGM, privately owned by the family of Lebanese-born Jacques Saadé , is the largest of many container lines to announce plans to restructure its debts and other obligations following the sector's worst-ever crisis.
Shipping volumes are expected to fall by about 10 per cent this year, while the rates lines can command per container are about 50 per cent below 2008 levels on some routes.
CMA CGM in September set up a creditor group for debt restructuring talks, including banks from Asia, where many of CMA CGM's significant order book of new ships is being built.
The line, which made losses before interest and tax of $515m on $4.8bn sales in the first half, is far more optimistic than other lines. Singapore's Neptune Orient Lines announced in October it expected to keep making losses at least for the first half of 2010 .
Mr Sartini said CMA CGM had returned to profit on Asia-Europe services - the most important long-haul route - after three quarters of losses.
"This good recovery in terms of freight rates and volumes is putting us in the black in this sector for October," Mr Sartini said. "The signal we have seen in the market . . . is leading us to the anticipation of close to break-even numbers for December 2009 for the whole of CMA CGM activity."
However, a restructuring remained necessary.
"The losses have been quite high, at a time when we have also been investing in downpayments for new vessels," he said.
The restructuring includes demands for owners of ships chartered by CMA CGM to cut their fees - to some owners' irritation. The shipping line itself had suffered from customers seeking to negotiate down prices, Mr Sartini said.
"Our customers are not caring one second about our profit and are putting us under pressure," he said. "The owners of the vessels we are referring to, maybe they are making indecent profits. We need to negotiate with our charterers to see what we can do to get through the worst crisis in container shipping."
CMA CGM now expects to announce an agreement with its creditors in mid-December, rather than mid-November as originally planned.
Copyright The Financial Times Limited 2009. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.