The French liner shipping company CMA CGM reported a jump in profits of more than 600% in the third quarter.
The company achieved a profit of US$2.73bn compared to US$388m in the same period last year. The company, led by Rodolphe Saadé, cites the sustained momentum in container shipping, an early peak season and the prospect of port strikes in the USA as the reasons for this.
The Group’s total revenue increased by 38.5% to US$15.8bn. Revenue from the liner business rose even more strongly by 43.4% to US$10.9bn, a significant increase on the previous year’s US$7.56bn. The transport volume rose by 5.5% to 6.04 million TEU.
CMA CGM is skeptical about the near future
“The increase can be explained by the strong demand in a period that proved to be dynamic for global trade,” says CMA CGM. Ship capacity remains limited due to the rerouting of ships via the Cape of Good Hope.
Looking ahead, the company sees some uncertainty for 2025, as the macroeconomy, regulatory changes and geopolitics will put pressure on shipping. At the same time, the capacity of the container fleet is increasing due to numerous newbuilds. “This could upset the balance between supply and demand and put further pressure on freight rates,” it says.
