CMA CGM has reported a 31.1 per cent rise in third-quarter revenue to US$18.4 billion, as stronger container demand and higher freight rates lifted its shipping business.
The French group released its results on Friday, November 13, saying it transported 6.5 million twenty-foot equivalent units during the quarter, up 5.5 per cent from a year earlier.
Shipping revenue increased 37.3 per cent to US$12.3 billion. Average revenue per container unit rose 30 per cent to US$1,891, showing that higher rates contributed significantly to the improvement.
The group attributed demand to companies rebuilding inventories, investment in artificial intelligence infrastructure and data centres, and growth in clean technologies and electric vehicles.
However, the stronger shipping performance was not matched across all its operations.
Logistics revenue increased 19.2 per cent to US$5.46 billion, but earnings before interest, tax, depreciation and amortisation in that division fell 14.4 per cent to US$366 million.
FreightWaves reported that the logistics division’s earnings margin narrowed to 6.7 per cent, reflecting difficult freight-forwarding conditions and weakness in the automotive sector.
The specialist publication also reported group net profit of US$2.32 billion, compared with approximately US$760 million a year earlier.
CMA CGM expects favourable shipping demand and freight rates to continue in the coming months. Reuters reported that the company did not issue financial guidance and warned that Middle East tensions and uncertainty over international trade relations continued to cloud the outlook.
