France-based shipping and logistics company CMA CGM has arranged a €1.05bn syndicated loan that will be 70% guaranteed by the French government.
CMA CGM Said that the loan was arranged by a consortium of locally based banks BNP Paribas and Société Générale.
CMA CGM said on May 13th that it anticipated a 10% year-on-year fall in market volumes during the first half of 2020.
That gloomy prognosis news was reinforced by shipping company AP Moller-Maersk, which said yesterday (May 13th) that there was likely to be a sharp drop in global container volumes due to the Covid-19 pandemic.
The company made the statement as it reported flat Q1 revenues, in line with expectations.
CEO Soren Skou said that “as global demand continues to be significantly affected, we expect volumes in the second quarter to decrease across all businesses, possibly by as much as 20%-25%”.
Maersk said that it had cancelled more than 90 sailings, or 3.5% of total shipping capacity, during Q1. It said that it expected to cancel about 140 sailings in the April to June period.
The company’s EBITDA rose for the quarter rose 23% year on year to $1.52bn, slightly above the guidance issued in March when it suspended full-year guidance due to uncertainty because of uncertainty surrounding the course of the pandemic.