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French container transportation and shipping company CMA CGM has announced that it is introducing new cost-saving measures which includes operating its ships at economical speed in order to lower bunker fuel consumption.

The new measures, which will be deployed in 2009, aim to reduce operating costs by approximately $600 million.

As part of the company's cost-cutting initiative, CMA CGM said it is continuing to rationalize its services in slowing markets, consolidating lines and strengthening partnerships to maintain service quality while reducing costs.

Because three-quarters of the fleet is chartered, CMA CGM said it has significant leeway to adjust to market demand. In 2009, more than 180 ships will come out of charter and will either be returned to their owners or renewed or replaced at attractive contract rates, leading to substantial cost savings for the Group.

In a commitment to revising its cost structure, CMA CGM said it is increasingly operating its ships at economical speed to lower bunker fuel consumption. The shipping line is campaigning for lower transit rates in the Suez and Panama canals and will continue to reroute part of the fleet via the Cape of Good Hope. It has also begun renegotiating contracts with terminals and shipyards to reduce costs.

At the end of 2008, CMA CGM reported revenue of $15.1 billion, up 28.2 percent compared with 2007. Freight volumes rose by 15.6 percent to 8.9 million TEU and the reefer fleet rose sharply during the year, making CMA CGM the world's second largest carrier of goods in refrigerated containers.

The company said it was able to maintain its growth trajectory in 2008 as a consequence of a number of strategic decisions which included (i) developing partnerships and space exchanges with comparable-sized shipping groups to share capacity and improve service quality; (ii) Launching new services in growing markets; (iii) Expanding the Group's presence in reefer transport, cargo projects and other niche markets; (iv) Investing in the acquisition of more productive vessels and in innovative, cost-effective and environmentally friendly technologies including electronic injection ship engines, reefers equipped with energy-efficient motors and light steel containers.

"Thanks to our forward-looking strategy, the flexibility of our systems and processes and our international expertise, we are quite confident in the ability of our company and our management team to successfully weather the current crisis," said Jacques R. Saadé, Chairman and Founder of the CMA CGM Group.

"Trade between Asia and especially Europe and the United States will remain unescapable and will unavoidably return to growth. 2009 will be a period of consolidation in the shipping sector and the major players will emerge stronger in the end," Saadé added.