During first-quarter 2024, the CMA CGM Group delivered what it describes as a robust financial performance, with EBITDA of $2.4bn on revenue of $11.8bn. While these figures were down 30% and 7% respectively year-on-year, they showed a rebound on the previous mainly due to the effect of persistent geopolitical tensions, particularly in the Red Sea region.
These tensions severely impeded the fluidity of global economic trade during the first quarter, causing a fall in effective available capacity in the shipping sector and a rebound in freight rates compared with the final quarter of 2023.
The disruptions are also producing major operational challenges, to which the CMA CGM Group says it has responded with agility. However, the Group is keeping a close eye on shipping sector fundamentals, in particular the effects of continued new ship deliveries on the balance between supply and demand, which has an impact on freight rates. It also remains focused on cost control and operating discipline.
Commenting on the results for the period, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: “Against a backdrop of industry normalization, our Group has demonstrated its agility and resilience in adapting to new market conditions.
“Our shipping division turned in a solid performance, buoyed by restocking in China and the United States. As for our logistics business, the acquisition of Bolloré Logistics gives us the critical mass we need to better withstand cyclical changes.
“In 2024, a year that remains uncertain due to the crisis in the Red Sea, CMA CGM will continue to meet its customers’ needs as effectively as possible. We will stay on course with our strategic investments, whether in decarbonisation or artificial intelligence.”
