CMA CGM Group grows its revenue by 29.9% Y-o-Y reaching $19.91 Billion in Q3 of 2022
Image : CMA CGM
CMA CGM Group, founded by Mr.Jacques Saadé, is currently the 3rd largest container shipping line in the world, owning and operating over 600+ container ships and 3.4 million TEUs.
In line with the continued stellar performances of the various container shipping lines on the back of unprecedented and exceptionally high freight rates, CMA CGM Group announced its financial results for Q3 of 2022.
CMA CGM Group revenue stood at USD19.9 billion in the third quarter of 2022, mostly driven by the Group’s maritime shipping business as per a press release from the French company.
The group transported 5.7 million TEUs in the third quarter of 2022 which was up 4.1% year-over-year and 0.9% quarter-over-quarter, reflecting the current drop in volumes globally on the back of reduced demand.
CMA CGM maritime shipping revenue amounted to USD15.7 billion, which was up 25.8% year-over-year, and -2% quarter-on-quarter, reflecting the decline in spot freight rates that began in the second quarter and continued into the third quarter.
Commenting on the results for the period, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said:
“The CMA CGM Group once again recorded strong results in the third quarter. Over the past two years, we have significantly strengthened our financial structure and developed our business through the entire supply chain. Declining demand has prompted a return to more normal international trade flows and a significant reduction in freight rates.
In this new environment, we will continue to invest to strengthen our positioning in maritime shipping and logistics, accelerate our energy transition and provide our clients with even more efficient solutions.”
Major investments to support the Group’s strategy
As per the group’s press release, Q3 of 2022 was shaped by persistent geopolitical tensions, which spurred higher inflation and dragged down consumer spending, which is increasingly shifting to services in the wake of COVID-19. These factors dampened freight demand, but also helped to ease a certain amount of port congestion.
Against this background, CMA CGM is looking to pursue its strategy of strengthening its shipping, port, logistics, and air freight capabilities, while making a significant commitment to energy transition.
Some of these investments include upgrading and increasing fleet sustainability, with two new 15,000-TEU, e-methane ready, dual-fuel container ships the CMA CGM Galapagos and the CMA CGM Greenland, both French-flagged.
“The CMA CGM Group is committed to achieving Net Zero Carbon by 2050 and intends to accelerate the energy transition in shipping and logistics, led by an enhanced energy mix,” the press release read.
On the back of its acquisition and strengthening of CEVA Logistics by integrating expertise and skills in e-commerce, last-mile delivery, and automotive logistics, CMA CGM has received approval from European competition authorities in July 2022 for the acquisition of GEFCO.
GEFCO plays a key role in maintaining production line integrity across the European automotive industry as a European leader in contract logistics, specializing in finished vehicle shipping and other automotive logistics.
Aside from the maritime and logistics investments, in Q3 of 2022, CMA CGM in association with its partner J M Baxi, won the tender for the privatization of Nhava Sheva terminal in the West Coast of India.
These investments have strengthened the CMA CGM Group’s position in a fast-growing regional and global market.
Creation of a €1.5 billion Fund for Energies
Thanks to its impressive performance, the CMA CGM Group announced the creation of a Fund for Energies, backed by a five-year, €1.5 billion budget, to accelerate its energy transition and achieve Net Zero Carbon emissions by 2050.
The Fund is dedicated to increasing the pace of decarbonization across the Group’s worldwide ocean, ground and air freight shipping activity, as well as its logistics business.
As part of this fund, a €200 million budget will be dedicated in early 2023 through a call for projects capable of supporting decarbonization across the entire French shipping and port industry.
“With this initiative, CMA CGM intends to drive the emergence of innovation-led projects to support the emergence of a carbon-free French shipping industry,” the press release read.