CMA CGM's profit drops 50% in Q2 2024
CMA CGM's second-quarter profit fell more than 50% year-on-year, despite revenue growth thanks to higher spot rates and strong demand.
CMA-CGM container vessel (Source: CMA-CGM)
French shipping company CMA CGM Group has reported a more than 50% drop in second-quarter profit. CMA CGM posted a net profit of $661 million in Q2 2024, down $670 million from the same period last year.
In contrast, the Group's revenue reached $13.1 billion in Q2, up 6.8% year-on-year. However, CMA CGM's earnings before interest, taxes, depreciation and amortization (EBITDA) fell 4.3% to $2.48 billion and its profit margin was 18.9%, down 2.2 percentage points.
CMA-CGM second quarter 2024 financial performanceSource: CMA CGM
Commenting on the results, Rodolphe Saadé, Chairman and CEO of CMA CGM Group, said: “Amid sustained demand, our Group delivered a solid performance in the second quarter, with a dynamic shipping business and a growing logistics pillar. We were able to adapt by redeploying capacity in response to the operational challenges caused by major disruptions on the main shipping routes. The Group has made key investments to accelerate the industry's decarbonization by renewing and upgrading its fleet, and to pursue its digital transformation by leveraging artificial intelligence.”
The spot rate hikes that began in the first quarter have continued into the second quarter, the company said. The company also noted that amid stable demand, the situation in the Red Sea and the diversion of vessels around the Cape of Good Hope continue to put pressure on available capacity.
Meanwhile, CMA CGM shipped 6 million TEUs in the second quarter, representing a 6.8% year-on-year increase in container volumes. The increase was driven by buoyant global trade and rising demand for freight, led by stable household consumption and continued inventory rebuilding, which impacted carriers offering trans-Pacific and Asia-Europe services, among others, the French carrier said in a statement.
Source: CMA CGM
Uncertain macroeconomic and geopolitical environments are likely to continue to weigh on mobility of shipping and logistics, CMA CGM said, adding that it is "continuing to invest in its industrial capabilities and digitization in order to offer customers the highest level of service and continue to decarbonize shipping and logistics."
Source: Phaata.com (via CMA CGM)
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