9 e-methane capable dual-fuel boxships joined CMA CGM’s fleet in 2022

9 e-methane capable dual-fuel boxships joined CMA CGM's fleet in 2022
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French container shipping giant CMA CGM welcomed nine e-methane-capable dual-fuel container ships to its fleet in 2022.

The vessels are part of CMA CGM’s $10.2 billion investment in a fleet of 77 LNG-powered and “e-methane-capable” vessels, 32 of which are already operational. The company also has six biomethanol-powered, e-methanol-capable vessels, which are expected to be available by the end of 2026.

As a reminder, last year the China State Shipbuilding Corporation (CSSC) completed ten 15,000 TEU container ships and delivered them to its French partner CMA CGM.

The occasion was the delivery of the LNG-powered container ship CMA CGM Greenland.

The boxship is a sister ship to the four LNG-powered container ships CMA CGM Patagonia (delivered September 2021) and CMA CGM Kimberley (Delivery in December 2021), CMA CGM Everglade (delivered January 2022) and CMA CGM Galapagos (delivered June 2022).

The company ordered five LNG-powered sister ships from China State Shipbuilding Corporation (CSSC) Jiangnan Shipyard along with another five 15,000 TEU vessels from CSSC subsidiary Hudong-Zhonghua Shipbuilding.

The five-vessel series has a container capacity of 15,254 TEU and uses LNG as the main fuel.

The remaining five 15,536 TEU vessels will burn conventional fuels and have been fitted with hybrid scrubbers. The TIER III compliant vessels have low fuel consumption and include CMA CGM Zephyr (delivered August 2021), CMA CGM Hermes (delivered October 2021), CMA CGM Osiris (delivered November 2021), CMA CGM Apollo (delivered January 2022 ) and CMA CGM Adonis (delivered February 2022).

In addition, the French major in container shipping is bunkering and testing biofuels on 32 ships in its vast fleet a new windshield prototype as part of its decarbonization efforts.

CMA CGM reported historical results for 2022 with full year revenue of $74.5 billion, up 33% from 2021, led by the group’s marine business. The group’s net income was $24.9 billion.

“Our group has delivered exceptional, historic results in 2022 that have enabled us to invest significantly in the operations of our entire business, driving our energy transition and sharing the value created with our people. As trade returns to normal and freight rates fall, our strategy and recent investments will prove all the more relevant and allow us to look to 2023 with confidence.” called Rodolphe SaadeChairman and Chief Executive Officer of the CMA CGM Group.

CMA CGM said it reinvested nearly 90% of its net earnings in 2022 into its industrial assets and capabilities while strengthening its balance sheet and improving financial flexibility.

The company said 23 billion euros was invested to grow the group’s business, including 2 billion euros in France, and that 726 million euros was paid out to employees for the year.

The group’s recent investments include acquiring 100% of the Fenix ​​Marine Services (FMS) terminal in the Long Beach/Los Angeles port area, beginning its 10-year operation to manage, operate and maintain the container terminal in Beirut and a Concession for the Nhava Sheva terminal in India with its partner JM Baxi.

In late 2022, CMA CGM announced the acquisition of two strategic terminals in the Port of New York, GCT Bayonne and GCT New York, which have a combined capacity of two million TEUs per year and the potential for further expansion to almost double the current one have capacity. Closing of the transaction is still subject to regulatory approvals.

In 2023, CMA CGM plans to expand into roll-on/roll-off (Ro-Ro) vessel transport and expand its offering in finished vehicle logistics, relying on the know-how of Gefcowhich is now part of the subsidiary of CEVA Logistics.

As part of this commitment, the group has created a new division dedicated to specialty ocean shipping which will include:

•Vehicle transport on car transporters.

• La Méridionale, a maritime shipping company operating ro-ro (ro-pax) cargo and passenger ships, currently being acquired by CMA CGM (subject to regulatory approvals).

• Investment in Brittany Ferries, in which CMA CGM invested €25 million in 2021 to support their recovery.

• the future capacity of Neoline, the first wind-powered ro-ro vessel that the group is helping to finance.

Regarding the outlook for 2023, CMA CGM said that market conditions in the transportation and logistics industry continue to deteriorate. The balance between supply and demand is expected to remain difficult as capacity is expected to increase – in both ocean shipping and air freight.

At the same time, the demand outlook appears uncertain as US retailers are destocking and consumer spending power is under pressure.

“Nevertheless, certain macroeconomic signals are stabilizing. In the US, consumer spending and the labor market remain resilient despite the very aggressive tightening that the US Federal Reserve has been pursuing in recent months. A recession has been averted for the time being in the European Union. Some emerging markets in Latin America and Southeast Asia remain strong,” said CMA CGM.

“The Group is closely monitoring economic and geopolitical developments, despite limited visibility for the remainder of the year, and remains confident that it can weather the cycle thanks to the diversification of its businesses and financial strength.” Source: Offshore Energy

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