Tariff Dispute between Washington and Beijing Haven’t Shown Effect on 2018 Third Quarter Peak Season

Media Release - GCaptain, 07/09/2018, 15:38

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CMA CGM sees a benefit for them from the busy market trade between China and United States. They can optimize their profit with the heavy flow of trade between the world’s two biggest economies.


Rodolphe Saade, the CEO of CMA CGM said that the tariff dispute between China and US hasn’t shown any effect on the third quarter peak season for export from China to US. The strong and robust trade and export from China to US in this period is the proof. However, if the effect of the economic wars between them started to kick in, it surely will affect the volume of goods exported, said Saade.


The strong economy of US is indirectly supporting the busy flow of trade. Furthermore, the US firms that started to do precautionary purchase because they are wary of the continuous trade wars between their country and China had a positive impact on the trade flow between the two countries.


After being taken offer two years ago from APL, a Singapore-based company part of consolidation in sector with problems of overcapacity vessels, Transpacific Trade has grown to be one of important part for CMA CGM. It encourages CMA CGM to do more acquisition.


Although they had stop their interest to acquire their Germany peer, Hapag-Lloyd, Saade said that CMA CGM will always try to find any acquisition opportunities. He also confirms that even though CMA CGM had some interest in acquiring Hapag-Lloyd, the interest has now gone.


“The third quarter is good for us, especially on transpacific routes,” said Saade at the launching ceremony for their newest vessel in port of Le Havre, north France. Their newest vessel was named after the legendary France Aviator, Antoine de Saint-Exupery. This ship has the length of 400 meters or 1,312 feet. Antoine de Saint-Exupery ships belong to the generation of giant ship that is built to have much, much better efficiency.


Whilst it was being claimed to have better efficiency, this generation of vessels is blamed as the contributor for the overcapacity problems. But CMA CGM argues that these giant ships is more appropriate and suitable to serve the busy trade route regardless of the geo-political condition on the said route.


Saade suggest that the trade and economic dispute between US and China will not last forever. He believes that world’s trade is going to grow again. CMA CGM who shares the same believe has started to do a long-term investment to increase their vessels capacity. This is done in hope that people will continue to buy products from China and Asia, so the trade capacity will increase.


CMA CGM also stressed on the fact that their newest vessel has lower environmental impact than other ships. Global shipping industries has been given a deadline to reduce their sulphur emission to the allowed level by 2020.


The cost estimation for the CMA CGM to adapt their vessels is still too early to be done according to Saade. He feels that the cost is a burden that is too heavy to bear for the shipping company, so he hopes that they could share some of the expenses to the customer to lower their burden.


Source:


https://gcaptain.com/cma-cgm-sees-brisk-china-u-s-trade-for-now/


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