CMA CGM saw its second-quarter earnings sink even though revenue surged as geopolitical tensions continued to impede the fluidity of global trade, creating congestion amid growing volumes.
Net income for the world’s third-largest liner operator was $661m in the second quarter, down 50% from $1.3bn in the same period a year earlier. The group saw only a 30% profit drop in the first quarter.
Ebitda fell more marginally to $2.48bn in the second quarter, a 4.3% dip compared to the prior year.
The company indicated that income was impacted by contributions to the endowment fund launched with Bpifrance for the decarbonisation of the French shipping industry, as well as to a major port hub project in the West Indies.
Also hitting the bottom line was funding the KYUTAI foundation, the first independent European research laboratory dedicated to open science in artificial intelligence.
Nevertheless, company CEO Rodolphe Saade said: “Amid sustained demand, our group delivered a solid performance in the second quarter, with a dynamic shipping business and a growing logistics pillar.
“We were able to adapt by redeploying capacity in response to the operational challenges caused by major disruptions on the main shipping routes.”
Meanwhile, group revenue was up 6.8% and stood at $13.1bn in the second quarter of 2024, on stable year-on year revenue gains for the shipping business and higher revenue for the logistics arm, boosted by the acquisition of Bollore Logistics in February 2024.
The company also saw an increase in business volumes, driven by sustained demand in maritime shipping amid disruption to major routes.
“The increase in spot freight rates that began in the first quarter continued into the second,” the company noted.
“Amid sustained demand, the situation in the Red Sea and the rerouting of vessels via the Cape of Good Hope continued to weigh on available shipping capacity.”
Looking ahead, the company admitted that the volatile macroeconomic and geopolitical environment could continue to affect the fluidity of maritime shipping and logistics.
