CMA CGM
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Company lifeThe CMA CGM Foundation Supports American Red Cross Disaster Relief Efforts
The CMA CGM Foundation has joined the American Red Cross Annual Disaster Giving Program (ADGP) and will provide both financial and logistical support. All of the CMA CGM Group’s assets, including American President Lines’ and CEVA Logistics’, will be mobilized to support Red Cross disaster relief efforts when needed. This collaboration will prove crucial as disasters are drastically increasing in frequency and intensity in the United States. On Thursday, October 12, 2023, Tanya Saadé Zeenny, President of the CMA CGM Foundation, and Anne McKeough, Chief Development Officer of the American Red Cross, met at the Red Cross Greater New York Chapter Office to sign the first partnership between the two organizations. The establishment of a new strategic partnership in the United States The CMA CGM Foundation committed to support the Red Cross Annual Disaster Giving Program (ADGP) by both making a proactive donation and providing logistics services free of charge. This commitment will help ensure that the Red Cross is prepared to meet the needs of people affected by disasters big and small across the U.S. The American Red Cross, a major responder to disasters across the country The Red Cross responds to more than 60,000 disasters across the U.S. every year — mobilizing a team every eight minutes on average — providing relief, comfort and hope to people during what can be the worst days of their lives. As large disasters like wildfires, tornados and hurricanes increase in frequency and intensity, ADGP members’ pledges and in-kind donations power the Red Cross with strong infrastructure, trained volunteers, innovative technology, and critical resources necessary to provide relief and support when needed. The CMA CGM Foundation’s commitment to the Red Cross Since launching its Containers of Hope program in 2012, the CMA CGM Foundation has played a key role in facilitating the transport of humanitarian supplies. The Foundation is now committed to supporting the Red Cross in its disaster relief efforts in the United States. The CMA CGM Foundation will provide financial and logistical support to the Red Cross. A special task force has been created within the CMA CGM Group and asked to be on standby to respond to emergency requests from the Red Cross. This task force will be able to mobilize all CMA CGM Group assets at the disposal of the Red Cross, including CMA CGM and American President Lines ships, and CEVA Logistics trucks and warehouses, to facilitate relief efforts in the event of a disaster. The American Red Cross name, logo and copyrighted materials are used with its permission, which in no way constitutes an endorsement, express or implied, of any product, service, company, opinion, or political position. The American Red Cross name and logo are registered trademarks owned by the American National Red Cross. For more information about the American Red Cross, please visit redcross.org.
Company lifeRenault Group, Volvo Group and CMA CGM Group join forces to address the growing needs of decarbonized and efficient logistics with an all-new generation of electric vans
Climate change accelerates the need of electrification transition and future CO2 regulations on transport of goods and access to cities are drastically transforming the logistic ecosystem. The professional customers already face increasing pressure on cost of usage, need for electrified, safer and fully connected vehicles with their business. By 2030, the European market for electrified vans will triple, promising a huge opportunity for a brand-new LCV offer, particularly addressing booming e-commerce and rental businesses. Renault Group, Volvo Group and CMA CGM are joining forces to pioneer and lead this new market with an all-new generation of fully electric vans and associated services. The pain points of the logistics players will be addressed with superior and safe solutions onboarding the new Software Defined Vehicle platform and a wide ecosystem of customized solutions. Renault Group and Volvo Group sign binding agreements to launch a new company where they will initially hold respective 50-50 equity stakes, are planning to invest EUR 300 million each over the course of the next three years. CMA CGM signs a non-binding letter of intent with Renault Group and Volvo Group to join the new company, investing EUR 120 million through PULSE, its Energy Fund dedicated to accelerating the decarbonization of transport and logistics sectors. The creation of the new company is expected early 2024 and remains subject to the completion of all regulatory approval processes. The future company is planned to operate under its own corporate identity and will be based in France. October 6, 2023, Boulogne-Billancourt (France) and Marseille (France) – Renault Group and Volvo Group join forces to address the growing needs of decarbonized and efficient logistics by creating a new company managing the development of an all-new generation of electric vans. The two groups look forward to CMA CGM joining the new company. Renault and Volvo will continue to seek additional investment and business partners. An all-new family of fully electric and software defined vehicles will be introduced by the new company. The production is planned to start in 2026. Modularity and safety The vehicles will be built on a new fully electric LCV skateboard platform that will offer high modularity for different body types at low cost and breakthrough on safety requirements. Unrivalled performance and range of services thanks to high connectivity Adopting the new Software Defined Vehicle architecture, the vehicle will onboard unprecedent capabilities to monitor the delivery activity and user business performance, reducing by 30% the global cost of usage for the logistic players. The connected services1 enabled by the software defined vehicle technology will offer to the customers up to date vehicles all lifelong. The van itself will offer outstanding compacity for urban mobility, high polyvalence for tailor made solutions, different battery capacities with unprecedent 800V feature for vans. Creation of a market maker: agility of a new company combined with robust business plan and expertise of three champions The new company will be fully independent, combining the agility of a start-up with the strong backbone of its industry-leading partners. Renault Group and Volvo Group aim to share investments in research and development and bring benefit of existing know-how, services, and industrial footprint to the new planned company. With smart capital allocations through the champions in each field, the new company will be based on a solid and efficient business model. As a global champion of Light Commercial Vehicle and innovative leader in electric vehicle, Renault Group will bring the know how to develop and manufacture at scale the electric platform that will onboard its first Software Defined Vehicle architecture, offering unprecedent experience to connect in open source the vehicle to the logistic business environment. Volvo Group is a global leader in trucks with a strong customer base of professional logistic companies, a global service network, and a wide experience in uptime and productivity services. Such services will, in combination with the innovative vehicle platform, contribute to a full solution for decarbonized urban logistics. As a global player on all segments of the supply chain, CMA CGM intends to assist the new company in building appropriate solutions that can fit all transport and supply chain player’s needs, based on end-to-end efficient solutions. “We are excited to take yet another step in our journey towards sustainable transport solutions through the intended establishment of a new company. Volvo Group is keen to continue to offer its customers complete transport solutions that help them decarbonize their value chains. We see a growing demand for clean, efficient, and safe urban transportation and partnership and collaboration is key to achieve this,” says Martin Lundstedt, President, and CEO of Volvo Group. “Electrification and digitalization are paving the way for a revolution in the LCV market. Renault Group intends to lead this transformation while ensuring a robust and effective value creation. Today, we are very proud to embark in this journey with Volvo Group to bring the best of solutions to our professional customers. We also look forward to CMA CGM joining the company. The new company is the start-up minded, unmatched combination of the complementary assets of 3 champions: a leading truck maker, expert in tailored services, a champion of the global supply chains, and a European EV pioneer & LCV leader. All the ingredients are there to come up with something truly unique,” says Luca de Meo, CEO of Renault Group. “As a leader in transport and logistics, the CMA CGM Group is proud to join forces with a major European carmaker and a leading global truck maker, Renault Group and Volvo Group, to create this new company of electric vans. This is a comprehensive and innovative partnership: not only are we investing in this project, but we will also bring our know-how and expertise to ensure inbound and outbound logistics, while some of these vehicles could ultimately be used to decarbonize our fleet. Through this new investment by our PULSE Fund in electric mobility, we are pursuing our commitment to accelerate the decarbonization of our activity and our sector,” says Rodolphe Saadé, Chairman and CEO of the CMA CGM Group. The joint venture is scheduled to start operations early 2024, depending on the completion of all regulatory approval processes. The subsequent entry of CMA CGM in the company is equally subject to the completion of regulatory approval process. The future company is planned to operate under its own corporate identity and will be based in France. Volvo Group, through its business area Renault Trucks, and Renault Group have been working together on light commercial vehicles for more than 35 years, materialized by the distribution in both networks of the Renault Master and Trafic commercial vehicles.
Company lifeCMA CGM and Maersk join forces to accelerate the decarbonization of the shipping industry
Both CMA CGM and Maersk have set ambitious Net Zero target and invest extensively in the energy transition in shipping. The two leading shipping companies will work together to develop the use of alternative greener fuels for container vessel propulsion. Maersk and CMA CGM affirm their readiness to collaboratively engage with regulatory stakeholders to secure the decarbonization of the sector. A.P. Moller – Maersk A/S (Maersk) and CMA CGM have decided to join forces on several areas relating to decarbonization, in full compliance with all laws and regulations. As frontrunners of the energy transition in shipping, both companies are convinced that joint action will help accelerating the green transition in shipping, learning from each other to go further and faster. CMA CGM and Maersk have set a net-zero target for their shipping business, have identified scalable solutions that can create impact in this decade, and have already individually taken ambitious paths on promoting decarbonization for shipping. Maersk has been ordering vessels that can be operated on bio/e-methanol. CMA CGM has been ordering LNG-propelled vessels, that can also be operated on bio/e-methane, the new green equivalent of current LNG, and has also placed orders for vessels that can be operated on bio/e-methanol. While these two fuel streams appear now as the most mature among existing solutions, both companies expect the future fuel mix of shipping will include other streams that should be developed in the coming years. An ambitious collaboration to develop the future of fuels for the shipping industry Specifically, both shipping lines will work more together to develop the use of alternative greener fuels for container vessel propulsion, namely: Developing high standards for alternative sustainable, green fuels - including the analysis of full lifecycle and related greenhouse gasses - and helping to setting the framework of mass production of green methane and green methanol Developing and maintaining standards for operation of green methanol vessels with regards to safety and bunkering, as well as accelerating port readiness for bunkering and supply of bio/e-methanol at key ports around the world Continuing to explore jointly R+D on other components of the net zero solution as new alternative fuels, like ammonia, or innovation technology for our ships Two leading shipping companies to push advocacy together for the energy transition of the industry Moreover, Maersk and CMA-CGM both agree to the fundamental role of regulation in securing the decarbonization of the sector. Both companies warmly welcome the outcome of the recent Marine Environment Protection Committee of the International Maritime Organization during which the IMO's 2023 Strategy for Reducing GHG Emissions from Ships was adopted, with reinforced targets to tackle harmful emissions. Maersk and CMA CGM remain committed to jointly advocating for and encouraging IMO Member States to adopt ambitious measures in their pursuit of the highest attainable goals. Regional measures such as the EU Fit for 55 and the Inflation Reduction Act in the US are welcomed by both companies to help stimulate demand for green shipping solutions. CMA CGM and Maersk affirm their readiness to collaboratively engage with regulatory stakeholders in establishing a robust and sustainable international regulatory GHG framework and invite other international shipping lines who so wish to join them in this cooperation with the regulatory institutions. Such a framework is in both our companies’ perspective a prerequisite to reducing carbon emissions for the shipping industry and securing a level-playing field for a global business environment. “This partnership is a milestone for the decarbonization of our industry. By combining the know-how and the expertise of two shipping leaders, we will accelerate the development of new solutions and technologies, enabling our industry to reach its CO2 reduction targets. We are looking forward to being joined by other companies.” says Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group. “A.P. Moller - Maersk wants to accelerate the green transition in shipping and logistics and to do so, we need strong involvement from partners across the industry. We are pleased to have an ally in CMA CGM and it’s a testament that when we unite through determined efforts and partnerships, a tangible and optimistic path toward a sustainable future emerges,” says Vincent Clerc, Chief Executive Officer at A.P. Moller – Maersk.
Company lifeThe CMA CGM Foundation and the OM Foundation commit to Marseille: Inauguration of the La Major city stadium
The CMA CGM Foundation inaugurated the La Major city stadium in the presence of Amélie Oudéa Castera, the Minister for Sport and the Olympic and Paralympic Games. The first realization of an unprecedented collaboration with the OM Foundation, the National Sports Agency and the City of Marseille. Tanya Saadé Zeenny, President of the CMA CGM Foundation, announced the renovation of 4 other city stadiums in Marseille in 2024. A festive inauguration in honor of sport On Friday, September 15, Tanya Saadé Zeenny, President of the CMA CGM Foundation, inaugurated the new colorful La Major city stadium. The culmination of three months of work was celebrated in the presence of Amelie Oudéa-Castéra, the Minister for Sport and the Olympic and Paralympic Games, Pablo Longoria, President of Olympique de Marseille, Sébastien Jibrayel, Deputy Mayor for Sport of the City of Marseille, and Anthony Krehmeier, Mayor of the 2nd and 3rd arrondissements. In a festive atmosphere, a delegation of personalities, including iconic OM players, joined the young people of the neighborhood on the new pitch. An emblematic pitch open to young people from all backgrounds The CMA CGM Foundation and the OM Foundation decided to join forces with the National Sports Agency and the City of Marseille to renovate this emblematic field and facilitate the practice of sport and education through sport. Located at the gates of Le Panier, a few meters from the La Major Cathedral, the city stadium bears a new visual identity, reminiscent of the maritime horizon. It will be open to the public and made available to neighborhood clubs and schools. The renovation of four additional fields throughout 2024 During this inaugural event, Tanya Saadé Zeenny announced the renovation and opening of four other city stadiums in priority neighborhoods lacking sports facilities: Parc Corot, 13th district Arnavaux, 14th arrondissement Roy d'Espagne, 9th district Belle de Mai, 3rd district The CMA CGM Foundation will continue to work with key stakeholders to better equip the city and allow young people to thrive in a safe and modern environment. Following the sponsorship partnership between the CMA CGM Group and Olympique de Marseille for the 2023-2024 season, this is also a new step in the close collaboration between the CMA CGM Foundation and the OM Foundation for the benefit of the people of Marseille.
Company lifeThe CMA CGM Foundation and Kenyan Red Cross’ partnership to strengthen humanitarian innovations and education systems in Kenya
The CMA CGM Foundation’s latest commitment to championing education in Africa Inauguration of an Innovation Centre aiming to promote young people’s employability 10 CMA CGM containers converted to house training workshops, computer rooms and co-working spaces Joint commitment to help the Kenyan youth find better opportunities The CMA CGM Foundation has made education for all its priority. It champions educational achievement and employability all around the world, in partnership with recognized non-profit organizations. Via Le Phare, its social incubator, the Foundation is also committed to supporting entrepreneurial and associative projects offering innovative educational solutions in Marseille, the French Antilles, and Côte d’Ivoire. The Kenya Red Cross Society (KRCS) was established in 1965 and is recognized as an auxiliary to the national and county governments. It supports local communities through its emergency response mechanisms and innovative partnerships. I.O.Me 001: an innovation lab aimed at empowering children, women and the youth Together with the KRCS, the CMA CGM Foundation made the commitment to support the economic empowerment of young people in the region. To achieve this goal, it has supplied 10 CMA CGM containers free of charge, which have been converted into an innovation centre in Mombasa, Coast Region- Kenya. This centre is designed to host, train, link people and create a positive impact for the community within the country at large. Its equipment and technologies will enable underprivileged young people to co-create and design solutions to the daily challenges they face. Through access to resources, youth and women will be empowered to setup businesses and startups strengthening their economic skills, and creating sustainable solutions. They will also be given the opportunity to take part in a range of courses and mentoring, including training to refine their core skills and the entrepreneurship and financial management skills that are so crucial to their employability. I.O.Me001 is the second innovation centre for the KRCS, with the first built and setup in Lamu, 2020. To date, in partnership with the French Embassy in Kenya and Somalia, I.O.Me001 has empowered over 1200 youth and women in Mombasa, that includes 400 children empowered with coding skills, with over 32 youth employed and more than 40 entrepreneurs supported including the 22 Women entrepreneurs empowered by French Red Cross.
Company lifeCMA CGM completes the acquisition of GCT Bayonne and New York container terminals
Acquisition expands CMA CGM’s U.S. East Coast footprint, strengthening the Group’s position as a global terminal operator. Development plan at both terminals will provide needed capacity to support the fluidity of U.S. supply chains. CMA CGM to work closely with the Port Authority of New York and New Jersey to decarbonize GCT operations. Further to the agreement announced on December 7th, 2022, the CMA CGM Group, a global player in sea, land, air and logistics solutions, has finalized its acquisition of Global Container Terminals (GCT) Bayonne and New York terminals. Through this strategic investment, the Group strengthens its position as a global port terminal operator, and a leading supply chain player in the United States providing end to end solutions to customers worldwide. Port GCT Bayonne and Port GCT New York expand CMA CGM’s portfolio of terminals in the U.S. to seven, ideally complementing on the US East Coast the Group’s acquisition of the Fenix Marine Services container terminal in the Port of Los Angeles on the US West Coast. These two new assets provide the Group with flagship terminal operations at a critical entry point on the U.S. East coast. This acquisition will strengthen the East Coast’s role in securing the U.S. supply chain and improve network resiliency. Investments in industry-leading infrastructure to support continued growth While CMA CGM Terminal arm will operate the two multi-user facilities under its current management team, the Group intends to further develop the two terminals which are key to the strategic New York/New Jersey gateway, the largest on the U.S. East Coast. CMA CGM’s ambitious development plan includes: Continued development of Bayonne’s Berth 3, which when completed, will be one of the most capable berths on the U.S. East Coast at a depth of 55 feet with 18,000 TEU vessel handling capability. Investments to create additional yard and berth capacity allowing improved operational fluidity at Bayonne and New York. Improved direct access to major highways and railways to and from the terminal facilities. Reduction in emissions and greenhouse gases with a goal of becoming Net Zero by 2050. CMA CGM, through its investments, will target to increase terminals capacity by more than 50% during the next 10 years. The development plan will add approximately 240 direct jobs and more than 700 construction jobs over the next seven years, providing a pathway to further benefit job growth in the New York/New Jersey region. From today, CMA CGM is proud to be the shareholder of GCT Bayonne and New York terminals.
Company lifeSecond-quarter 2023 financial results
Further normalization of the transport and logistics markets. Revenue and operating profit down, in line with first-quarter guidance. Stable contribution of the logistics segment supported by external growth and the dynamism of certain activities. Financial strength supporting continued investments and the implementation of the Group’s decarbonization strategy. The Board of Directors of the CMA CGM Group, a global player in sea, land, air and logistics solutions, met today under the chairmanship of Rodolphe Saadé, Chairman and Chief Executive Officer, to review the financial statements for the second quarter of 2023. Commenting on the results for the period, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: “As expected, our industry continued to normalize in the second quarter and, despite difficult market conditions, our performance remains robust. In recent years, we have significantly strengthened our two strategic pillars: transport and logistics. On that basis, our Group will pursue its transformation, as it continues to expand and to integrate recently acquired subsidiaries, while stepping up investments to decarbonize its activities”. Second-quarter 2023 operating and financial performance Group: lower performance reflecting difficult market conditions First-quarter 2023 trends remained at play in the second quarter of 2023, with deteriorated market conditions in the transport and logistics industry. Despite a rebound in demand for transport in the second quarter of 2023 compared with the previous quarter, driven by a degree of macroeconomic resilience and lower energy prices, the transport and logistics market remains depressed. Revenue stood at USD 12.3 billion in the second quarter of 2023, driven mostly by the Group’s shipping business. EBITDA came to USD 2.6 billion, 73% lower than in second-quarter 2022. EBITDA margin came in at 21.1%, down 28.1 points. Net income, Group share amounted to USD 1.3 billion. Financial resources net of debt totaled USD 3.8 billion at June 30, 2023, down USD 1,852 million from December 31, 2022. The Group continues to invest in supporting the energy transition for transport and logistics: by maintaining its assertive investments to diversify the energy mix with the aim of achieving Net Zero Carbon by 2050, with over USD 14 billion invested in a fleet representing more than 100 LNG- and methanol-powered ships; by creating CMA CGM's Fund for Energies with a budget of €1.5 billion over five years. Outlays of €430 million have already been committed to accelerate the energy transition across the Group’s worldwide sea, land, air and logistics activities. Shipping Consolidated revenue from shipping operations amounted to USD 8.4 billion, down 47.9% from second-quarter 2022. EBITDA totaled USD 2.2 billion, 76% lower than in the prior-year period. EBITDA margin came in at 26.2%, down 30.7 points. Average revenue per TEU amounted to USD 1,491, down 10.3% year on year. Volumes remained buoyant on the North-South lines, but the Transpacific and Asia-Europe lines were hit by the slowdown in household consumption and dealer inventory drawdowns. In second-quarter 2023, the Group carried 5.60 million TEUs, down 0.3% on the second quarter of 2022 despite an 11.5% rebound compared with the first quarter of the year, reflecting the seasonal nature of the business but also an upturn in demand. Logistics Revenue from logistics operations totaled USD 3.8 billion in the second quarter of the year. EBITDA stood at USD 356 million, a 4.7% increase on second-quarter 2022. The stability of the logistics business, in a context of declining trade, reflects both the slowdown in freight markets and the strengthening of the end-to-end supply chain services offered to CMA CGM Group customers through the acquisitions made since second-quarter 2022 of Ingram CLS, Gefco and Colis Privé. Freight management activities are impacted by the declining market. Contract logistics activities are recovering in Europe but remain generally affected by the weakness of the e-commerce segment, particularly in the United States. Finished Vehicle Logistics are performing well supported by favourable market dynamics due to the combination of persistent supply chain disruptions and strong demand. During the second-quarter 2023 the CMA CGM Group submitted an offer to acquire Bolloré Group's freight forwarding and logistics operations, which will strengthen CMA CGM's logistics expertise in a wide range of high value-added sectors. CMA CGM's logistics operations are set to rank among the world's top five players in transport and logistics. Other activities Revenue from other activities, which include port terminals and CMA CGM Air Cargo, fell to USD 474 million. EBITDA was USD 50 million, down 61.9%, mainly due to lower volumes in port terminals and a less buoyant air transport market. Outlook Macroeconomic and geopolitical uncertainties and deteriorating transport markets Late 2022 trends continued to prevail in the first half of 2023, with deteriorated market conditions in the transport and logistics industry. Macroeconomic forecasts for the second half of 2023 anticipate sluggish global growth given the persistent inflationary pressures weighing on consumer spending as well as the measures taken by central banks in response, and geopolitical uncertainties. In light of uncertain demand, new capacity arriving on the market is likely to weigh on freight rates in shipping, particularly on East-West lines. The Group's financial results continue to return to normal as indicated in the previous quarter. The Group is confident in its ability to weather the cycle thanks to its combined transport and logistics strategy and its financial strength. Given the inflationary environment, we are being particularly vigilant about keeping operating costs under control.
