After Being CEO, Rodolphe Saade Again Helmed As Chairman

Damas Jati - 27/11/2017, 14:00

CMA CGM announced Friday last week that its board had appointed Rodolphe Saade as chairman in addition to his chief executive role, completing a handover from his father, Jacques, who founded the family business.


Rodolphe Saade became CEO in February after leading negotiations on the APL deal – the biggest acquisition in the company’s history.


Jacques Saadé said a release from the company that the decision is for the company’s future and in view of Rodolphe Saade success stories after being the Chief Executive Officer (CEO) in February 2017.


“To prepare the future, last February 7th I appointed Rodolphe Saadé to the position of Chief Executive Officer.  His strategy has delivered very good operational and financial results.  The Group is strong.  I am very confident in its future.  That is why I have decided to entrust to Rodolphe the Chairmanship of the Group in addition to his current responsibilities as CEO. He has the full support of the Board of Directors, the management team and the 29 000 employees with whom he will pursue the development of the CMA CGM Group, to which I dedicated my entire life,” Jacques Saadé said in the release.


 


In responding the decision, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, declared: “My father’s decision is an historic one for our Group which became a key global player under his chairmanship. Jacques Saadé is both an extraordinary entrepreneur and visionary. I will pursue with determination the development of our group and strengthen its position as a leader.”


CMA CGM said in its earnings statement that one of the highlights of the third quarter was the order for nine containerships of 22,000 TEU signed on September 19, for which delivery will begin in 2020.


But just days later Mediterranean Shipping Company(MSC) placed its own order for 11 ships of 22,000 TEU capacity, raising concerns of a mega-ship ordering spree.


So far that has not happened, but there are 13 more ships of 18,000 TEU and above that are still to be delivered this year, and 28 more will come online in 2018. Cosco Shipping also has 11 ships of 20,000 TEU on order at Chinese yards that will start hitting the water from late 2018/early 2019.


Alphaliner said between August 2016 and February 2017 carriers retreated from orders and the total fleet actually shrunk marginally, but the growth rate has resumed since March this year, with a net addition of 700,000 TEU joining the fleet over the past eight months. Only 230,000 TEU have been scrapped since March, while 930,000 TEU have been delivered over the same period.


The faster pace would continue, the analyst predicted, with the global fleet expected to breach 22 million TEU within the next 12 months due to the planned deliveries of over 80 ships of 10,000-21,000 TEU during the coming year, while scrapping activity was expected to remain subdued.