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

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

5. CMA CGM GROUP CMA CGM in the US
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