- Outlook: uncertain economic conditions, normalizing trade flows and an sharp decline in freight rates.
- Strong financial position: net debt reduced by USD 5.3 billion in the third quarter.
- Creation of the Fund for Energies: stepping up investments to drive the energy transition in the maritime shipping and logistics industry.
CMA CGM reports a very strong third-quarter financial results in a more challenging economic and geopolitical environment.
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
The third quarter 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 congestions.
In this environment, the CMA CGM Group pursued its strategy of strengthening its shipping, port, logistics and air freight capabilities, while making a significant commitment to energy transition.
The Group was also impacted by the unstable geopolitical situation, specifically by the increase in unit bunker costs driven by higher energy prices. On a like-for-like fuel consumption basis, these higher energy prices led to a year-over-year increase of USD 822 million in bunker costs in the third quarter of 2022. The slowdown in shipping demand pushed down spot freight rates, particularly on main East-West routes.
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Source: CMA CGM
