CMA CGM posted decreases in revenue and EBITDA in the second quarter of 2023, attributing the results to “difficult” market conditions.

Revenue fell 36.9% compared with the second quarter of 2022 to US$12.3 billion. EBITDA plunged 73% in the same period to US$2.6 billion.

Net income for the second quarter of 2023 landed at US$1.3 billion, down 82% from the US$7.6 billion posted in the same quarter last year.

CMA CGM said revenue in the second quarter was driven largely by the group’s shipping business.

Volumes carried were only slightly lower than what CMA CGM reported in the same period last year. The company carried 5.6 million TEU in the second quarter of 2023, down 0.3% from the same period last year.

It reported “buoyant” volumes on the North-South lines, but noted trans-Pacific and Asia-Europe lines were hit by the slowdown in household consumption and dealer inventory drawdowns.

“As expected, our industry continued to normalise in the second quarter and, despite difficult market conditions, our performance remains robust,” CMA CGM Group chairman and CEO Rodolphe Saadé said.

“In recent years, we have significantly strengthened our two strategic pillars: transport and logistics. On that basis, our group will pursue its transformation, as it continues to expand and to integrate recently acquired subsidiaries, while stepping up investments to decarbonise its activities.”

CMA CGM said the stability of the logistics business in the context of declining trade reflects the slowdown in freight markets and the strengthening of services through acquisitions made since second-quarter 2022, including the Gefco acquisition.

In the second quarter of 2023, the group also offered to buy the freight forwarding and logistics operations of Bolloré Group.

Revenue from other activities include port terminals and CMA CGM Air Cargo fell 5.3% to US$474 million.

EBITDA for those activities dropped 62% to US$50 million, mainly due to lower volumes in port terminals and a less buoyant air transport market, the company said.

Looking ahead, CMA CGM expects new capacity on the market to weigh on freight rates in shipping – particularly on east-west lines – in light of uncertain demand.

The group said its financial results are returning to normal and, given the inflationary environment, it is being “particularly vigilant” about keeping operating costs under control.