CMA CGM reports strong quarter amid Geopolitical Tensions
MARSEILLE : CMA CGM has reported robust demand for cargo shipping in its second-quarter 2024 results, despite ongoing geopolitical tensions.
The company said it delivered a strong performance with increased cargo volumes, driven by steady growth in Western countries and slowing inflation, even amid congestion and geopolitical issues, particularly in the Red Sea region.
“Amid sustained demand, our Group delivered a solid performance in the second quarter, with a dynamic shipping business and a growing logistics pillar,” said Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group. “We were able to adapt by redeploying capacity in response to the operational challenges caused by major disruptions on the main shipping routes. The Group has made key investments to accelerate the industry’s decarbonization by renewing and upgrading its fleet, and to pursue its digital transformation by leveraging artificial intelligence.”
To address operational challenges, CMA CGM launched the French Peak Service and invested in twelve LNG vessels as part of its Net Zero Carbon by 2050 goal. The Group also integrated Bolloré Logistics with CEVA Logistics, creating a top-five global logistics company, and expanded its media activities by acquiring RMC BFM.
CMA CGM’s revenue increased by 6.8% to USD 13.1 billion in Q2 2024, though EBITDA decreased by 4.3% to USD 2.48 billion, resulting in an 18.9% margin. Net income fell by USD 670 million to USD 661 million, impacted by contributions to decarbonization and digitization projects.
In Q2 2024, the company’s ships carried 6.0 million TEUs, a 6.8% increase from the previous year due to strong global trade and cargo demand. Revenue from maritime shipping was USD 8.29 billion, slightly down from Q2 2023, with EBITDA at USD 2.0 million, a 9.0% decrease, and an average revenue per TEU of USD 1,385.
CMA CGM’s logistics operations grew significantly during the quarter, driven by Bolloré Logistics and strong performance in various logistics sectors. Revenue reached USD 4.79 billion, with EBITDA increasing by 28.8% to USD 450 million.
Looking ahead, CMA CGM noted that the volatile macroeconomic and geopolitical environment could continue to affect maritime shipping and logistics. The Group remains focused on cost control and operational discipline, continuing to invest in industrial capabilities and digitization to offer top-tier service and further decarbonize the industry.