APL gains 'new momentum' as Q3 box volume surges 9.9pc to 1.

Time: 2016-12-02 13:38
FRENCH shipping giant CMA CGM said that APL, has regained "new momentum, "with volumes in the third quarter of this year totalling 1.3 million TEU, 9.9 per cent higher than in the same 2015 quarter.
CMA CGM is maintaining APL as a distinct brand after acquiring Singapore-based Neptune Orient Lines, earlier this year. APL's performance has improved in the first three months under the ownership of CMA CGM Group, despite a challenging market, the French shipping carrier said.
"This organic growth was driven by more than 20 co-operations on new and enhanced services with CMA CGM,"the company said, according to American Shipper.
CMA CGM cited the example of the transpacific trade where it has a leading position with APL taking over the management of the US Lines business, another subsidiary within the CMA CGM Group, and as a result, increased its book of business by over 10 per cent.
CMA CGM said APL's operating margin improved by 40.2 per cent per FEU from the same period in the previous year and that APL's costs per FEU decreased by 15.7 per cent year over year.
"This reflects the progress made in APL's continuous cost savings efforts, as well as the significant operational synergies gained through its new parent company. In the last three months alone, 19 vessels have been cross-chartered between APL and CMA CGM to maximise utilisation. In addition, more than 6,000 TEU of containers have been exchanged to save costs, "CMA CGM said.
It also said cooperation between APL and CMA CGM has delivered "joint procurement synergies and cost savings in wide-ranging areas, including terminal charges, ship management, equipment logistics as well as intermodal and vessel feeder services.
In addition, CMA CGM said it "is delivering on its commitment to enhance Singapore's position as a key maritime hub and grow Singapore's container throughput volumes through its joint venture with PSA Singapore Terminals.
The CMA CGM-PSA Lion Terminal started operations on July 22 with two berths and a capacity of 2 million TEU, with the aim of growing to four berths in January 2017.
CMA CGM also moved its regional head office from Hong Kong to Singapore where APL is based in July 2016.
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