FRENCH shipping giant CMA CGM reported a six-fold surge in group net profit to US$2.7 billion in the third quarter, as revenue increased by more the one-third on stronger container pricing power and the front-loading of US imports.
The world's third-largest operator of containerships said it benefited from an early peak season with volumes carried on major shipping routes remaining 'very high' over the third quarter.
The Marseille-based shipping and logistics group's total revenue jumped 38.5 per cent year over year to $15.8 billion during the quarter, leading to a blockbuster quarterly profit that dwarfed the $388 million it recorded in the same three-month period last year.
The revenue was driven by strong demand in shipping combined with disruption on major trade routes, reports Ventura, California's gCaptain.
CMA CGM's volumes shipped climbed 5.5 per cent to 6 million TEU in the third quarter, driven by inventory restocking in North America.
"Our Group has delivered solid performances in the third quarter, with dynamic maritime activity and ongoing transformation within our logistics division," said CEO Rodolphe Saade. "We have adapted our offerings, invested in terminals, and made significant advances in artificial intelligence to enhance service quality."
Ongoing geopolitical tensions continued to reroute vessels via the Cape of Good Hope, extending transit times and tightening available shipping capacity. CMA CGM responded by reallocating resources to keep goods flowing, despite the logistical strains these disruptions caused.
Looking ahead, CMA CGM anticipates a challenging 2025, with macroeconomic trends, regulatory changes, and geopolitical issues potentially impacting maritime shipping and logistics.
"At the same time, new container shipping capacity will come into service. This may disrupt the balance between supply and demand and continue to hamper freight rates, in line with the recent trend," CMA CGM said.
"The CMA CGM Group remains focused on cost control and operational discipline and will continue to invest in its industrial capabilities and terminals."
https://www.shippingazette.com/news?news_id=9241100000259
|
Back:
Next:
