rss icon Subscribe
desktop mobile

CMA CGM Takes $1.1 Bln Loan

© Marek Slusarczyk / Adobe Stock

Shipping group CMA CGM has obtained a 1.05 billion euro ($1.1 billion) loan to be 70% guaranteed by the French government as it seeks to bolster its cash position during the coronavirus pandemic, which has hammered international trade.

The loan, secured from a consortium of banks comprising BNP Paribas, HSBC and Société Générale, has an initial one-year maturity and an extension option of up to five years, Marseille-based CMA CGM said in a statement on Wednesday.

France is offering guarantees to support billions of euros in loans for French companies to help them survive the economic fallout from the novel coronavirus.

"This new funding further strengthens CMA CGM's cash position in order to confront uncertainties in the global economy resulting from the health crisis," the group said.

Privately held CMA CGM, which is controlled by the founding Saade family, said it expects a 10% fall in market volumes in the first half of 2020 versus a year earlier.

A spokesman added that the group was experiencing a contraction in container shipping volumes in line with this market trend.

Container shipping market leader Maersk said on Wednesday it now expected global demand in the sector to contract this year, after previously forecasting 1%-3% growth, and warned volumes in the second quarter could decline by as much as a quarter.

CMA CGM had said in early March it expected a limited impact on its operations this year from the coronavirus, as activity resumed in China after an initial outbreak there.

The virus has since spread across the world, particularly affecting Western Europe and the United States.

CMA CGM posted a net loss last year and has been trying to reduce its debt burden following the takeover of Swiss firm CEVA Logistics, aimed at expanding its presence in non-maritime transport.

CEVA was facing a downturn in many business sectors it serves, although it was seeing short-term demand for transporting medical supplies like masks, including through airlifts between China and France, the spokesman said, declining to give an estimate of CEVA's level of activity.

($1 = 0.9219 euros)

(Reporting by Sudip Kar-Gupta and Gus Trompiz; editing by Jason Neely and Steve Orlofsky)

May 13, 2020



Streamlining and Simplifying US Government Guaranteed Vessel Financing

© wi6995 / Adobe Stock

The Maritime Administration (MARAD) has taken several steps to streamline and simplify the Federal

'Largest Ever' Offshore Wind Financial Close Reached for World's Largest Offshore Wind Farm

Illustration: GE Renewables/ via Equinor

Equinor and SSE have announced a financial close on the first two phases of the world's largest

EU Green Finance Rules Leaky for Ships

© Lina / Adobe Stock

Months of EU deliberation to decide which business activities can be marketed as green investments

Government Update

FMC Raises the Monitoring Report Requirements for Global Carrier Alliances

FMC Chairman Michael Khouri. Photo: FMC

Pursuant to direction from FMC Chairman Michael Khouri, the Federal Maritime Commission has issued

FMC: Ocean Shipping Challenges Abound

“The mis-declaration of hazardous materials is an area where we work in cooperation with Customs and Border Protection and the U.S. Coast Guard. The FMC’s Shipping Act concern is the market fraud when a shipper declares to a common carrier in its shipping documents that the tendered cargo is some innocuous variety, when the cargo is properly categorized as hazardous; thereby receiving a lower freight rate.”
– Michael A. Khouri, Chairman, Federal Maritime Commission (FMC)

© Pawinee/AdobeStock

Since early Spring 2020, American consumers have received a practical education in supply chain

Opinion: Legislative Loophole Could Keep U.S. Offshore Wind Jones Act Fleet at Dock


The U.S. House of Representatives has passed the Expanding Access to Sustainable Energy Act of 2019

Maritime Apps