The French shipping and logistics company .CMA CGM,reported a net profit of $388 million for Q3 2023 compared to $7.04 billion in the same period a year earlier.
The 94% slump in net profit was similar to many of its competitors as container shipping returned sharply to earth post-pandemic with market conditions further exacerbated record deliveries of new buildings.
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: “The industry continued to normalise in the third quarter, with a return to pre-pandemic market conditions. Our performance remained very solid however, confirming the relevance of our growth strategy in terminals and logistics. We are consequently more resilient as we enter this new cycle.”
Revenues for CMA CGM fell 42.6% year-on-year to $11.43 billion in Q3 2023 compared to $19.9 billion in the same period in 2022. The company noted a gradual rebalancing of the contributions of its shipping and logistics, with revenues of $3.76 billion in Q3 2023 the logistics business accounted for 32% of total revenues.
Looking ahead, the company noted macroeconomic forecasts did expect a recovery in 2024, however, world trade was expected to rebound. CMA CGM said that new capacity coming into the market in 2024 would like continue push down freight rates.
“The slowdown in the global economy is expected to continue weighing on our industry in the period ahead, but volumes carried are still robust. We remain committed to controlling our operating costs, and are continuing to focus on decarbonising and digitalising the supply chain to best meet our customers’ needs,” Saadé said.