Announcements

Note: The information presented defers from the information published by CMA CGM Group due to purchase price allocation adjustments, among others.

Operations Review

For the full year ended 31 December 2018, APL’s revenue stood at US$6.357 billion, up 8% from US$5.882 billion in FY2017. The improved revenue was attributable to a 7% volume growth to almost 5.41 million TEUs, versus 5.06 million TEUs in FY2017.

APL reported a Core EBITDA of US$110 million amid rises in bunker and operational costs.

Moving forward, APL will focus on improving profitability by embarking on a rigorous cost management and yield-focused trade strategy that encompasses network optimisation and better cargo selection. This is consistent with the CMA CGM Group’s US$1.2 billion cost reduction plan for 2019 which was announced on 1 March 2019.

Trade Performance

In 2018, APL registered significant volume improvements on almost all the trade lanes it serves, demonstrating its commercial dynamism. In particular, APL’s stronghold Intra-Asia market saw a 9% volume increase and an improved product mix. In addition, Trans-Pacific market recorded a 6% volume increase.

Service and Network Development

Shoring up market relevance, APL steered ahead with 36 services of the OCEAN ALLIANCE, as part of the CMA CGM Group; and 20 services that it introduced and refined in 2018.

APL successfully launched the premium Eagle Express X (EXX) service which made waves with its fast 11-day Shanghai-US West Coast transit; excellent customer service; as well as guaranteed equipment and space. APL’s US flagged Eagle Express (EX1) service was also upsized and refined, speeding up transit time from the US West Coast to Asia.

APL also introduced Eagle GO Guaranteed, a value-added service promising equipment and vessel space on board its services. APL expanded this pay-on-demand offering that now applies to APL’s Intra-Asia, Asia-Europe, Trans-Pacific, Trans-Atlantic, Oceania, Asia-Latin America and North America-Latin America services.

Becoming the Intra-Asia champion through CNC

On 31 December 2018, APL acquired the book of business and trademarks of its sister company Cheng Lie Navigation Co., Ltd (CNC). The completion of acquisition follows APL’s announcement on 10 December 2018.

CNC, now a brand of APL, will integrate the Intra-Asia shortsea business of APL and become the sole brand of the CMA CGM Group in Intra-Asia shortsea.

APL’s FY2018 Performance Review can be downloaded from here. For more information on CMA CGM Group financial performance, click here.