The CMA CGM Group has undertaken a number of strategic moves in recent months, including the acquisition of Ceva Logistics and regional short-sea players such as Mercosul and Containerships and the modernization of its fleet. To adapt to the changing market, the Group is now taking a new step in its transformation by consolidating its development and implementing an ambitious cost reduction program.
Following the friendly takeover bid for Ceva, the CMA CGM Group now holds 99.4% of Ceva’s equity. Therefore a new, stronger governance structure has been put in place. Nicolas Sartini becomes Chief Executive Officer as of June 1st, 2019, tasked with implementing Ceva’s turnaround plan and returning it to profitability.
A Ceva operations center will be set up in Marseilles, bringing together management teams and support functions, for a total of 200 employees (new jobs and transfers). Located near the Group’s head office, it will strengthen the operational management and control of Ceva.
In continuation of the “Agility” plan to improve overall operational performance, which was implemented in July 2016, the Group announced in March 2019 a strengthened plan with a savings target of USD 1.2 billion. Since its launch, this plan has already achieved savings of USD 245 million, through the rationalization 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.
Further initiatives will reduce the Group’s overheads and transport costs while reinforcing the actions already undertaken. This enables the CMA CGM Group to raise its savings targets and increase its ambitious performance improvement and cost control program to USD 1.5 billion, mainly by streamlining its organization and its maritime routes.
The scope of the major Group brands will evolve as of October 1st, 2019, in order to strengthen the Group’s overall performance and efficiency:
- CMA CGM, the Group’s global brand, will be the only carrier in the Transatlantic, Asia-Europe, Asia-Mediterranean, Asia-Caribbean and Europe-India/Middle East markets;
- APL will focus on the following markets: Transpacific, in which it plays a key role, Asia-Indian Subcontinent where it will be the Group’s only brand, Intra-Asia, with CNC, Asia-Oceania, and the US Flag services;
- ANL will 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.
Led by Rodolphe Saadé, the CMA CGM Group is a world leader in shipping and logistics. Its 511 vessels serve more than 420 ports on five continents around the world and carried nearly 21 million TEUs in 2018. With Ceva a world leader in logistics services, CMA CGM handled more than 500,000 tons of airfreight and 1.9 million tons of inland freight in 2018.
Present on every continent and in 160 countries through its network of 755 offices and 750 warehouses, the CMA CGM Group employs nearly 110,000 people worldwide, of which 2,400 in Marseille where its head office is located.
