The decline is certainly sensitive and may still grow

President and CEO of the French group CMA CGM, Jacques Saadé explains, in an interview with the "Echos", how the third world shipowner of the transport of containers by regular lines adapts to the new economic situation: in example redeploying some shipping lines or by making their owners of small vessels end contract of affreightment. CMA CGM has also renegotiated with shipyards conditions of payment of some of its ships in command. Jacques Saadé said also interested in a new profession: the maritime transport of new cars. Finally, to alarm intentions of the European Commission, which wants to limit margins of manoeuvre of shipowners cooperating in consortia to provide services in common.

CMA CGM is the third world shipowner in the transport of containers. What is the impact on your business in the current economic downturn

It is obvious that the financial crisis born in the United States has degenerated and cold around the world. In Asia, China was aware of its exports of 10 to 15 annual growth. This progress will slow down and spend 6 to 9, or even a little less. On the other hand, countries such as the India or the Viet Nam and some countries of South America will be rather their volumes increase.

In total, our ships remain filled to 90 to 95 between Asia and Europe. Of course, given the parallel increase in capacity at the controls of new container past in recent years by the major global shipowners, cargo rates is in feel, but step as some have said: between Asia and Europe, the cost of transport of a container of 20 feet was 1,400 dollars earlier this year, including currency and fuel surcharges. Today, the price of a 20 foot is between 1,100 and 1,200 dollars. The decline is certainly sensitive and may still grow.

And between Asia and North America, feel the effects of the crisis

The United States had already begun their crisis in 2007 and we had anticipated and transferred several ships on the European markets, which were booming. Indeed, Asia-United States lines less experienced slower than those of Asia-Europe. In addition, at this time, we had already an agreement long term with a giant of American distribution agreement whereby CMA CGM guaranteed the deployment of a number of ships against a commitment of volumes of the charger.

Between 2008 and 2011, the world fleet of container ships will be increased by 1.586 ships. How will in view of the slowdown of the economy, you handle this overcapacity

In 2007, CMA CGM has considered that the American crisis could spread worldwide. Therefore we have prepared the situation by creating new lines to secure volumes surplus, from Asia to destination Europe, Mediterranean, North Africa and the West, which would complete our large vessels upon their arrival in fleet. Today, we are just transferring these volumes on regular lines, where we will deploy our large ships.

I would recall that, well before this bleak period, CMA CGM has reinforced its positions with purchaser several shipping companies, each based on a different continent. All of these companies have contributed to our international growth and development, for several years, confirms our expertise and strengthen our presence in all markets of the world.

How the great port hubs fit in this strategy

We have developed two hubs in the Mediterranean: the port of Malta, where we enjoy a concession of sixty-five years, and recently the port of Tanger Med, which is located at the crossroads of all the continents. This port is full destinations for the future to serve the West coast of Africa, America and other; It may also accommodate larger vessels, which, of course, when they are full, cheaper operation transported unit. This set is an essential tool of our group strategy to cope with the current situation.

Furthermore, as all the owners, we have strengthened our activity of transport in containers chilled, much more appropriate to the needs of customers, because it provides door-to-door, unlike refrigerated ships that require the transfer of the goods in trucks chilled to customer deposits.

Then, we have developed some products for export to Asia in addition to traditional exports to Europe and the United States, such as certain raw materials and products semi-finished. Finally, I would point out that today ' hui ships of more than twenty-five years are sold to the demolition, which also lowers the price per tonne.

And what do you do for small vessels which you no longer need

We pay to their owners as soon as they arrive at the end of Charter, otherwise we réemployons them on other lines. About 400 ships that we operate, we have a quarter and we affrétons the rest. Since August 1, more than 30 ships arrived at maturity of Charter. Those that we have chosen to keep have been renegotiated at although Charter conditions more interesting.

You will take still delivery of 76 vessels by 2012, most of very large container ships between 150 and 175 million dollars the unit. You have the financial capacity

76 Ships under construction, 55 are in property and 21 are chartered in the long term. It should be noted that the deliveries of these vessels will be spread from 2009 to 2011 and some units in 2012. We have already funded most of these ships and we thank the banks for their support and confidence. We have, Furthermore, negotiated closer terms of payment of that originally planned delivery dates. In view of the size of our group and its commands, all agreed.

The results of our group in late 2008 will be far from those of 2007 exceptional year but they will remain beneficiaries with a comfortable cash. Don't forget that CMA CGM is a family business not traded, and that we have always reinvested the entirety of profits in the company.

CMA CGM has diversified, while modest scale, in the cruise. Do you have other projects in other areas

In its policy of diversification, CMA CGM is is actually oriented cruise "top line" by buying the Compagnie des Iles du Ponant. We have therefore 3 vessels of small size and we passed command of two new luxury ships equipped with 150 booths each, which will also exploited for cruises to music and exceptional destinations.

With regard to our new projects in other areas: Yes, the transport of new cars here, because China and the India began to export these products and we want to participate in this new market promising. If we carry contracts, we then affréterons specialized ships the "car-carriers" and then we'll build our own ships.

What do you think of the initiatives of the European Commission, which has just put an end to the shipping conferences allowing shipowners to fix transit capacity and tariffs on some lines and attacking now consortia

It is an extremely dangerous ideological posture for the European maritime industry and European ports. Today, a consortium is allowed as long as it takes no more than 35 market share on the service it operates. Rumors are circulating that Brussels would fall 30 from 2010 permission. Can discuss. But that profile actually, is the total prohibition of consortia in 2015. However, by sharing costs between operators on relatively low traffic lines, a consortium to ensure a greater frequency of service, allows great flexibility consistent with the demands of the clients and allows to escaler secondary ports who would, otherwise, overlooked by the large shipowners. Even the Chargers are for consortia!

The first three global shipowners are European. Will that happen to them if Brussels imposed too many restrictions Asian shipowners, who will be least affected by European regulations, will have the "good part" and benefit to take the leadership of Europe and the Europeans. The future of the consortia should not be dealt with at European level, but worldwide, the United Nations and WTO.