Container shipping giant CMA CGM reported a second straight quarterly loss as the takeover of CEVA Logistics weighed on its results, but said its business volumes remained strong on the back of a buoyant U.S. economy.
French-based CMA CGM, the world’s fourth-largest container shipping firm, announced on Friday a second-quarter net loss of $109 million, adding to a $43 million loss in the first quarter.
The group said it expected a better second half of the year, supported by previously announced plans to reduce costs and reorganise its shipping services.
CMA CGM acquired CEVA earlier this year to expand in land logistics and wants the loss-making Swiss firm to break even by the end of this year.
CMA CGM’s shipped volumes increased by 6.3% year-on-year, accelerating from 4.4% growth in the first quarter, with CMA CGM citing brisk U.S. demand and healthy activity on its intra-regional lines.
The firm has said previously that a year-old U.S.-China trade dispute has not dampened its activity, with southeast Asia partly replacing China in meeting high U.S. import demand.