The CMA CGM Marco Polo claimed the title of the largest boxship afloat when it hit the water this week and it is facing the same key question which welcomed all of the previous record holders – can it be a commercial success?

Nicolas Sartini, head of Asia Europe trade at CMA CGM, tells TradeWinds more than 20-years of evolution suggests the Marco Polo and its two sister ships to follow will prove a profitable investment for the company.

“We have seen over the years that economy of scale works in this trade,” he said during a telephone interview from Marseille.

“We started in 1986 operating 1,600-teu vessels and today they are 10 times bigger. It has been a process of upsizing step by step and each time we have had the same question mark and over time it has proved each time to be the correct decision.

“I am quite convinced it will prove financially advantageous. If you look at the past each time we have introduced a new larger vessel it has been a success.”

Sartini explains the arrival of the new flagship has led to an 11,000-teu vessel being taken off the Asia Europe route and redeployed in the Transpacific.

This means that while the CMA CGM Marco Polo will be “very positive” CMA CGM, its delivery will have a “negligible” impact on the market, he says.

Title changing hands

The CMA CGM Marco Polo took the title as the largest containership afloat from the 15,550-teu Emma Maersk (built 2006). It will keep the crown for a year, before the Danish line’s 18,000-teu vessels enter the fray.

Sartini says 18,000-teu vessels “probably make sense”, but for now he is content that Maersk is catching up with CMA CGM.

While the Triple-E arrivals will mean Maersk once again having the largest ships in the business, Sartini believes the French line will not be left behind.

He explains the option on whether to order more new vessels or form alliances with others with comparable ships will come at a later date.

And he has no fears that the Maersk giants will lead to a further rate squeeze on the key Asia Europe route.

He says that the Danish line presently runs two strings with 8,000-teu vessels on the trade, which is likely to be replaced by one string containing 18,000-teu ships.

“If they do that there will be no impact on the market,” Sartini said.

Following the delivery of the Marco Polo from Daewoo Shipbuilding & Marine Engineering, CMA CGM has 28 vessels over 11,000-teu, of which 21 are owned. A further two 16,000-teu vessels from DSME next year will take the total to 30.

Sartini says that newbuilding prices are attractive today for new orders to be placed, but is giving nothing away in terms of what CMA CGM may be planning.

The company has endured a difficult few years financially, but is now plotting the course for an IPO following a $250m injection, supported by the French sovereign wealth fund, Fonds Strategique d’Investissement.

Pressed on the potential for further contracts for large vessels, Sartini said: “Prices are attractive today but before ordering ships you have to have assessed the supply and demand balance is right and have access to finance.”

He added: “We are always looking at expansion. Today we are focusing on the new vessel and then quickly looking forward.”