CMA CGM hit by 50 per cent profit loss

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CMA CGM reports strong financial results in Q2 2024

The CMA CGM Group has announced its second-quarter results for 2024, revealing a loss in profits despite robust volume figures.

The French shipping conglomerate stated that this time was active for global commerce and cargo transportation demand, aided by ongoing geopolitical concerns, notably in the Red Sea region.

These tensions continued to impede the fluidity of global trade in the second quarter, creating congestion in certain regions.

At the same time, volumes carried increased significantly compared to the same period in 2023, when US distributors began to draw down their stockpiles, as well as the first quarter of 2024. This is because GDP in Western nations remained stable, as did household spending, but inflation moderated as a result of monetary measures, reported the group.

To assist its clients and relieve supply chain pressures, CMA CGM has created the French Peak Service, a seasonal shipping line designed to fulfil the strong demand for shipping between Asia and Europe.

The CMA CGM Group has continued to invest in its industrial capabilities, ordering twelve 15,000 TEU liquefied natural gas (LNG) vessels from Hyundai Heavy Industries.

This order is part of CMA CGM’s fleet modernisation initiative, which aims to achieve Net Zero Carbon by 2050, with the vessels entering service in late 2027.

In total, 6 million TEU were moved in the second quarter of 2024, representing a 6.8 per cent increase over the previous year period.

READ: CMA CGM, Pasqal integrate quantum technologies for maritime

The Group reported a net income of $661 million, down $670 million or 51 per cent from last year. 

In the second quarter of 2024, the group’s revenue reached $13.1 billion, marking a 6.8 per cent increase. This growth is attributed to stable year-on-year revenue for the shipping business and increased revenue for the logistics business, primarily due to the inclusion of Bolloré Logistics since February 2024.

The EBITDA totalled $2.48 billion, representing a 4.3 per cent decrease compared to the previous year.

The consolidated revenue from maritime shipping operations was $8.29 billion for the quarter, which is a decrease of 0.8 per cent from the second quarter of 2023.

EBITDA stood at $2 million, down by 9 compared to the second quarter of 2023.

READ: CMA CGM vessel loses 44 containers off South Africa

Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, 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. The Group has made key investments to accelerate the industry’s decarbonisation by renewing and upgrading its fleet, and to pursue its digital transformation by leveraging artificial intelligence.” 

Recently, CMA CGM and Google formed a strategic cooperation to accelerate the integration of artificial intelligence (AI) across the company’s global operations.

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