CMA CGM Sees Shipping Demand and Revenue Growth Persisting Into Third Quarter
Strong Performance and Outlook for CMA CGM Amid Global Uncertainties
Second Quarter Financial Results
PARIS, July 28 (Reuters) - French shipping group CMA CGM said on Tuesday stronger-than-expected demand that lifted its second-quarter results should extend into the third quarter, despite the conflict in the Middle East and uncertainty over U.S. tariffs further ahead.
- The world's third-largest container shipping group's revenue rose to $15.69 billion from $13.17 billion a year earlier while earnings before interest, taxes, depreciation and amortisation rose to $2.99 billion from $2.28 billion.
Volume Growth and Market Comparison
- Volume handled by CMA CGM rose "very slightly above 6%" in the first five months of the year, ahead of 4.7% for the world container market, Chief Financial Officer Ramon Fernandez told Reuters.
Factors Driving Demand
- Demand was lifted by stock rebuilding, resilient consumption and investment, as well as orders brought forward by customers worried about supply disruption and U.S. tariffs, he said.
Future Outlook and Market Challenges
- The group earlier this year said it expected container shipping to slow in 2026 after a brisk 2025.
Managing Conflict-Related Costs
- Stronger volumes and firmer freight rates helped offset conflict-related costs, including vessel immobilisation, higher insurance premiums and lower volumes on Gulf services, Fernandez said.
Capacity Expansion and Logistics Strategy
- CMA CGM, privately controlled by the Saade family, increased transport capacity by 9% in the quarter and added new services while relying on its terminals and logistics network to reroute cargo when disruption hit, Fernandez said.
Freight Rates and Capacity Management
- Freight rates over the next six to 18 months were difficult to predict as new ships enter the market but carriers can slow vessels, idle ships or scrap older ones to manage capacity, Fernandez said.
Emergency Measures and Ongoing Risks
- CMA CGM last week announced an emergency fuel surcharge effective August 1 following the renewed escalation of hostilities in the Strait of Hormuz.
- CMA CGM has eight ships still trapped in the Gulf, Fernandez said.
Reporting
(Reporting by Sybille de La Hamaide)
