The Marseille-based shipping liner CMA CGM Group, a global player in shipping and logistics, has reported a significant decline in profits and revenues for the third quarter of 2023, amid broader industry challenges and a return to pre-pandemic market conditions.
The company’s revenue stood at $11.4 billion in the third quarter of 2023, with a gradual rebalancing of contributions from the Group’s maritime shipping and logistics businesses.
Ebitda came to $2 billion, 78.2% lower than in third-quarter 2022. Ebitda margin came in at 17.5%, down 28.5 points and net income for the Group amounted to $388 million.
Despite these headwinds, CEO Rodolphe Saadé highlighted the resilience of CMA CGM’s growth strategy.
“The industry continued to normalize in the third quarter, with a return to pre-pandemic market conditions. Our performance remained very solid however, confirming the relevance of our growth strategy in terminals and logistics. We are consequently more resilient as we enter this new cycle,” he said.
The third quarter of 2023 confirmed the trend towards normalization in the transport and logistics markets, with a return to 2019 pre-Covid conditions.
CMA CGM’s priority is now on investing in its operating assets as it recently completed its $2.8 billion acquisition of the GCT Bayonne and New York container terminals, renamed Port Liberty Bayonne and Port Liberty New York.
Looking forward into 2024, CMA CGM remains optimistic about recovery prospects despite expectations of a rebound in world trade and new capacity that could pressure freight rates further.
“New capacity expected on the market in 2024 will likely continue to pull down freight rates,” the French shipping giant said.
The company is now “focusing on maintaining operating cost discipline, rolling out its decarbonization policy and successfully integrating the strategic investments made over the last two years.”
