THE persistent geopolitical tension impeded the fluidity of global trade in 2Q 2024, CMA CGM says, but also supported demand for cargo shipping.
Volumes rose sharply compared to the same period in 2023 but also to 1Q 2024 as growth in Western countries held firm, as did household consumption, while inflation slowed due to the impact of monetary policies, the Marseilles-based carrier said. A downside was congestion “in certain areas”.
“These disruptions brought operational challenges to which the Group responded with agility, thanks to investments in its fleet over the last few years. To support its customers and help alleviate pressure on supply chains, CMA CGM has launched the French Peak Service, an exceptional seasonal shipping line to meet the high demand for shipping between Asia and Europe.
CMA CGM noted the group has continued to invest in its industrial capabilities with an order for twelve 15,000 TEU LNG vessels from Hyundai Heavy Industries, part of the fleet renewal program in line with achieving Net Zero Carbon by 2050.
The group is also continuing to integrate Bolloré Logistics, following its acquisition which was completed in late February 2024. From now on, CEVA Logistics and Bolloré Logistics will operate under a single brand – CEVA Logistics – one of the world’s top five in the industry.
In more detail, the increase in spot freight rates that began in the first quarter continued into the second. Amid sustained demand, the situation in the Red Sea and the rerouting of vessels via the Cape of Good Hope continued to weigh on available shipping capacity, CMA CGM said.
Group revenue stood at US$13.1 billion in the second quarter of 2024, up 6.8%, reflecting stable year-on-year revenue for the shipping business and higher revenue for the logistics business, boosted by the consolidation of Bolloré Logistics since 29 February. EBITDA totalled US$2.48 billion, 4.3% lower than in the prior-year period, and the margin came in at 18.9%, down 2.2 points. The group reported net income of US$661 million, down US$670 million.
In all, 6.0 million TEU were carried in 2Q 2024, up 6.8% from the prior-year period. Consolidated revenue from maritime shipping operations amounted to US$8.29 billion over the quarter, down 0.8% from 2Q 2023. EBITDA came to US$2.0 million, 9.0% lower than in second-quarter 2023. EBITDA margin came in at 23.9%, down 2.2 points. Average revenue per TEU amounted to US$1,385, down 7.1% year on year.
In the second quarter, the group’s logistics activities continued to grow, boosted in particular by the contribution of Bolloré Logistics since its consolidation and good momentum in Contract Logistics, Finished Vehicle Logistics and Road Haulage, especially in Europe. Revenue from logistics operations totalled US$4.79 billion in in2Q 2024. EBITDA stood at US$450 million, a 28.8% increase on second-quarter 2023.
Commenting on the results for the period, chairman and CEO Rodolphe Saadé said that amid sustained demand, CMA CGM 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,” Mr Saadé said.
