Marseille-based CMA CGM, the French shipping giant, to rescue Breton Brittany Ferries

In the face of the Covid-19 pandemic, cross-channel Britanny Ferries with both hands accepted a €25 million contribution with new money from global shipping giant CMA CGM. The press release issued by the two companies on Tuesday also refers to a “trade partnership” for trade with the UK. Jean-Marc Roy, president of Brittany Ferris, told AFP he was pleased to benefit from the support “The first French shipping company”:

“It is clear that with this commitment, CMA CGM is verifying our five-year recovery plan and business plan,” which may facilitate discussions “with other potential investors,” he added.

Support but no long-term commitment

In concrete terms, CMA CGM will subscribe to €10m of convertible bonds from Brittany Ferries and loan €15m to Breton, repayable after five to eight years, Mr Rowe has identified.

The ship owner in Marseille will send a representative to the Brittany Ferries Supervisory Board, “but there is no ambition for CMA CGM house to be ad vitam eternam in (the capital of) a tourism company,” the director noted.

He pointed out that the company must first repay a state-guaranteed loan of 117 million euros.

Business partnership and exchange of experience

The agreement also provides for a “commercial partnership” that will enhance the use of cargo space available on Brittany Ferries ships serving the United Kingdom, Ireland and the Iberian Peninsula.

The two companies will also share their experience in the use of liquefied natural gas (LNG) to propel ships, in particular “on the topics of French crew training and safety procedures”.

Brittany ferries: 530 thousand passengers this year compared to 2.5 million in 2019…

On the other hand, Brittany Ferries sank into the red, dividing revenue by 2.3 last year and 2021. “Bad or worse than 2020”, According to M. Roué.

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He pointed out that after transporting 750,000 passengers last year, the company is expected to receive 530,000 this year, up from 2.5 million in 2019. However, he hopes “recovery” Next year, the number of bookings for 2022 he says is already “well geared”.

Brittany Ferries operates boats between Roscoff (Finisterre), Saint Malo (Ile-et-Villains), Cherbourg (Manche), Caen-Oytryham (Calvados) and Le Havre (Seine-Maritime) on the one hand, southern England and on the other hand, Ireland, as well as between Ireland England and Spain.

CMA CGM takes full advantage of the explosion in sea freight

Long in the red, CMA CGM is taking full advantage of the shipping temperature warming caused by the Covid-19 crisis, with net profit approaching $3.5 billion in the second quarter of 2021 alone.