Group
Corporate Presentation
Todd Rives, Sr VP & CCO
10/23/2014
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.
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
2
CMA CGM GROUP
Statistics
CMA CGM Globally
11.4m TEUs carried in 2013
18 000 Employees
650 Offices Worldwide
428 Operated vessel
400 Port of calls
The 3rd Largest Container Carrier in
the World
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
3
CMA CGM GROUP
Volume and Growth
11,400
10,600
CMA CGM Globally
10,016
9,000
8,900
7,700
7,900
6,000
5,200
3,900
2,800
1,900
2,300
CMA CGM: 17% Average Volume
Growth over 13 Years Period
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
4
CMA CGM GROUP
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%
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
5
Let’s Talk for a Second About the Challenges With Larger Ships
Trust Me – It’s Important Later…
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
6
LARGE SHIPS
Large Ships Present Two Major Challenges
1 = Size of the ships
2 = Highly Concentrated Volumes of Cargo
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
Rail Impact
• Longer Trains
• Flatcar Availability
• Double Stack
• On Dock Rail
• Higher Ramp Traffic Concentration
• Origin & Destination
• Dedicated Trains/Corridors
Customer Impact
• Concentrated Flows = High Velocity
• Potential Warehouse Stresses
• Improved Schedule Reliability
• Dray Power Challenges
Effectively Managing These Issues Will Result In Improved Efficiency Throughout the Supply Chain
7
What’s 2015 Going to Look Like?
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
8
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
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
9
What’s Ahead After That?
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
10
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 2016-2017
• From Over Supply to Under Supply
• Building Boom from 2003-2012 Absorbed
• Carriers are Ordering At a Slower Pace
• The days of 50% Orderbook are gone
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
11
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
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
12
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
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
13
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
Todd Rives, CCO CMA CGM (America) LLC
October, 2014
Harris County Trade &
Transportation Conference
14
Thank you