Container carrier CMA CGM saw overall revenue and profits soar in the third quarter on modestly higher demand for liner services along with disruptions to shipping routes.
Group revenue for the Marseille, France-based company was $15.8 billion, up 38.5% from the third quarter of 2023. Earnings before interest, taxes, depreciation and amortization totaled $5 billion with a margin of 31.4%, up 14 points.
The third-largest vessel operator said new vessels entering service in 2025 could alter supply and demand and “hamper” freight rates.
Shipping revenue came to $10.9 billion, a gain of 43.4% y/y. EBITDA was $4.4 billion, ahead 179%, and EBITDA margin was 40.2%, up 19.6 points. Average revenue per twenty-foot equivalent unit totaled $1,798 as volume was 5.5% higher at 6 million TEUs.
“The increase can be explained by strong demand over a period that proved dynamic for global trade,” the company said in an earnings release. “Shipping capacity continued to be limited by the rerouting of vessels via the Cape of Good Hope and a degree of anticipation in an uncertain global context. The strong demand amplified the usual peak season, and also caused it to begin earlier than usual.”
Revenues have jumped for carriers routing ships away from attacks on shipping in the Red Sea and around the Horn of Africa, on longer voyages and increased operating costs passed to shippers as higher rates.
“In a context of geopolitical and economic uncertainties, our group has delivered solid performances in the third quarter, with a very dynamic maritime activity and a logistics pillar that continues its transformation,” said Rodolphe Saade, chairman and chief executive of the CMA CGM Group, in the release. “This quarter also marked an important step in the deployment of artificial intelligence across our activities to continue enhancing the quality of service for our customers.”
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