CMA CGM secures $1.14bn loan and state guarantee

CMA CGM secures $1.14bn loan and state guarantee

France’s CMA CGM, the world’s fourth largest containerline, has secured a state loan guarantee linked to the coronavirus crisis, with the government backing a €1.05bn ($1.14bn) loan from BNP Paribas, HSBC France and Société Générale.

The carrier has opted to take part in the French government’s emergency €300bn loan guarantee scheme and becomes the latest liner to get state aid during the crisis with the likes of HMM and Yang Ming securing hundreds of millions of dollars in aid in recent weeks.

Rodolphe Saadé issued a video on the CMA CGM website last month outlining his vision of a more equitable and resilient supply chain in the future, post-coronavirus.

The chairman of the Marseille-based containerline said in the video: “This crisis will no doubt change our consumer and working habits. It will impact world economic flows and will necessitate that we all rethink our supply chain models.”

Supply chains will need to be redesigned to be more resilient, Saadé said, adding that they would also need to be able to react better to sharp reductions in supply and demand.

As part of its strategy during the coronavirus crisis CMA CGM has started sending ships via the Cape of Good Hope in both directions from and to Asia and Europe, giving the Suez Canal a miss, to soak up capacity during the downturn.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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