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Corporate Presentation

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Presentation on theme: "Corporate Presentation"— Presentation transcript:

1 Corporate Presentation
Group Corporate Presentation Todd Rives, Sr VP & CCO 10/23/2014

2 CMA CGM a leader in container shipping
Led by its founder, Mr. Jacques R. Saadé, CMA CGM is the world’s third largest container shipping company. CMA CGM Group is today a global enterprise operating on all the world’s shipping routes and offers the full range of logistics and transportation services to its customers.

3 11.4m 18 000 650 428 400 CMA CGM GROUP TEUs carried in 2013
Statistics 11.4m TEUs carried in 2013 CMA CGM Globally 18 000 Employees 650 Offices Worldwide 428 Operated vessel 400 Port of calls The 3rd Largest Container Carrier in the World

Volume and Growth CMA CGM Globally CMA CGM: 17% Average Volume Growth over 13 Years Period

MARKET SHARE & RANKING CMA CGM in the US CMA CGM: Ranked number 5 overall with a 3% growth in 2013 giving us a total market share of 6.2%

6 Let’s Talk for a Second About the Challenges With Larger Ships
Trust Me – It’s Important Later…

7 LARGE SHIPS Large Ships Present Two Major Challenges
1 = Size of the ships 2 = Highly Concentrated Volumes of Cargo Rail Impact Longer Trains Flatcar Availability Double Stack On Dock Rail Higher Ramp Traffic Concentration Origin & Destination Dedicated Trains/Corridors Port Impact Harbor Depth (& Air Draft) Berths – 1300 Foot? Cranes – Reach (20+), How Many Per Berth? Moves Per Hour Critical On Dock Rail Back of Crane Infrastructure Gates Intense “Peak Days” Highways Pilots & Tugs Customer Impact Concentrated Flows = High Velocity Potential Warehouse Stresses Improved Schedule Reliability Dray Power Challenges Large Ship Challenges Size of the ships Concentrated Cargo Volumes Port Impacts Harbor Depth Longer Berths Enough Big Crates to hit moves/hour On Dock Rail – too much volume to dray to ramps “Back of Crane” infrastructure Yard Space, Container Handlers, Automation, etc Gates – capable of handling velocity spikes Highways - congestion is a risk, easy on/off critical Pilots and Tugs – special training, tugs with enough power to handle large sail area Rail Impacts Longer Trains to handle required velocity Flatcar availability On Dock Rail Higher Ramp Traffic Concentration Port area and Inland Hubs Dedicated Trains and Corridors Customer Impacts Concentrated Flows = High Velocity (Buckets vs Conveyor Belts) Potential Warehouse Stresses Drayage Challenges for Local Customers (see terminal above), and high peak demand Improved Schedule Reliability, Effectively Managing These Issues Will Result In Improved Efficiency Throughout the Supply Chain

8 What’s 2015 Going to Look Like?

9 Container Shipping in 2015 New Alliances
Four Alliances Dominate East/West Lanes Alpha-Numeric Spelling Test: O3, 2M, G6, CHKY-E Realignment of Global Networks During Q1 More Big Ships Calling US Ports Import Growth Stagnant Exports Chassis Lack of Truckers

10 What’s Ahead After That?

11 Looking to the Mid and Long Term
Ships Continue to Get Larger Economies of Scale Can’t be Ignored VSA’s Become Even More Prevalent Carriers Find Other Differentiators Supply/Demand Cycle Flips in From Over Supply to Under Supply Building Boom from Absorbed Carriers are Ordering At a Slower Pace The days of 50% Orderbook are gone

12 Looking to the Mid and Long Term
Remember the “Big Ship Challenges?” Infrastructure Struggles to Keep Up Power Challenges Velocity Increases Rail and Highway Pipelines Panama Canal Compounds the Issues on the USEC

13 What’s the Solution? Not a new formula --- Plan Communicate
Work Together Jointly Explore Methods to Leverage Supply Chain CMA CGM Stands Ready and Willing to Find and Explore New Ideas and Methods to Improve the Flow of Cargo! We Ask Everyone To Join With Us Clients Vendors Suppliers Even Competitors Where Possible

14 Gulf Specific Issues Container Availability
CMA CGM operates a global network with direct gulf services from Asia, Europe, and the Far East CMA CGM tonnage, allowing maximum flexibility This provides us the ability to feed empty containers to the gulf market from surplus areas Most commonly from the Caribbean basin, which structurally is highly imbalanced Forecasting is critical to accommodate lead times Chassis CMA CGM believes that the Trucker Model is the long term solution to the current chassis issues in North America Truckers would seem the logical choice to efficiently manage the asset However, we work with clients to develop customized solutions during the transition period while the industry is transforming

15 Thank you

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