<\/p>\n
Marseille-based CMA CGM expects to see a 15% volume contraction in the second quarter, which will be the lowest point of the year, said Michel Sirat in a phone interview on Friday. After that, volumes \u201cshould be up in all recovery scenarios.\u201d<\/p>\n
<\/p>\n
\u201cWe\u2019re relatively confident about 2020,\u201d he said.<\/p>\n
<\/p>\n
Sirat said that any moves to alter supply chains are likely to be slow and customers will continue to buy goods in China post-pandemic.<\/p>\n
<\/p>\n
The coronavirus revealed weaknesses in global supply networks including a heavy reliance by the auto-parts industry on the Chinese province of Hubei, where the first outbreak occurred. Plant shutdowns there sent global carmakers scrambling for parts, creating havoc within plants around the world.<\/p>\n
<\/p>\n
Sirat was speaking as CMA CGM released first quarter earnings that showed it swung to a net income of $48 million from a $43 million net loss a year earlier. Revenue was $7.19 billion in the first quarter, down 3% compared to the same period of last year, according to a statement. Earnings before interest, taxes, depreciation, and amortization jumped 25% to $973 million over the same period, mainly due to cost cutting measures put in place in 2019.<\/p>\n
<\/p>\n