CMA CGM - Comments

As it seeks to transform from a shipping company to an integrated logistics business, CMA CGM continues to invest in the CEVA Logistics business. It has confirmed a previously provisional order for four Airbus A350F freighters. In the 9-months to September CMA CGM purchased 5 Airbus craft for USD264m. It also ordered 2 Boeing aircraft costing USD189m. The current cash flow bonanza from persistently high shipping rates is providing cash flow to expand the reach of the business. Although these are also saleable assets and alongside port facilities can be turned to cash in the future if strategic priorities ever change on the back of falling freight rates.