CMA CGM’s 2022 financial results were largely in line with the other major ocean carriers: gigantic profits in the first half on the back of high freight rates, with a contraction in the second half (particularly in the fourth quarter) as freight rates started declining.
CMA CGM Group chief executive officer Rodolphe Saadé said the 2022 results were “exceptional” and “historic”.
“As trade returns to normal and freight rates decline, our strategy and recent investments will prove all the more relevant and allow us to look forward to 2023 with confidence,” he said.
“Leveraging our financial strength and entrepreneurial spirit, we will continue to develop our operations in transport and logistics to meet the needs of our customers, who expect a group like ours to deliver the best service at the lowest possible cost, with the smallest environmental footprint.”
CMA CGM reported a decline in cargo volumes, down 1.3% year-on-year. The company said the first half of the year was marked with high demand for consumer goods, but constrained shipping capacity.
And then the second half saw a “demand shock accentuated in the fourth quarter by a wave of inventory destocking in the US and the impact of persistent inflation on consumer spending”.
CMA CGM said the situation was exacerbated by the energy crisis in Europe.
“As a result, volumes transported by the Group on East-West routes declined by 7.2% in the fourth quarter, while the North-South routes proved more resilient thanks in particular to the sustained growth of certain emerging economies,” the company said.
“Lastly, intra-regional volumes suffered both from the Russian-Ukrainian conflict (with the termination of Russian services) and from the lack of capacity in Asia early in the year. The decline in demand spurred a quicker return to normal spot freight rates in the final quarter.”
