CMA CGM, the world’s third-largest container carrier, reported that its maritime business reached a total of $8.2 billion in the second quarter of 2024. However, this figure represents a slight decrease of 1.5% compared to the same period in 2023.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) also experienced a decline, falling by 19.9% to $1.6 billion. This decrease can be attributed to the increasing economic pressures that the company is facing. As a result, the EBITDA margin, which represents the portion of revenue that remains after deducting interest, taxes, depreciation, and amortization, also saw a reduction, dropping by 4.5 percentage points compared to the previous year.
Furthermore, the average revenue per twenty-foot equivalent unit (TEU), which is a unit of measurement used to quantify the volume of cargo transported, decreased by 1.2% to $1,367.
Despite these challenges, CMA CGM managed to transport 6 million TEUs in the quarter, which is consistent with the previous year’s performance. This near-stability is particularly noteworthy given the significant and temporary decline in trade flows between China and the United States during the quarter.
The company’s chairman and chief executive officer, Rodolphe Saade, expressed confidence in the company’s ability to deliver stable performance in the face of persistent geopolitical tensions and renewed trade uncertainties. Saade emphasized the resilience of CMA CGM’s maritime activities as a key driver of its success.
Saade also highlighted the relevance of the company’s diversification strategy across terminals, logistics, and air freight. This strategy enables CMA CGM to offer comprehensive global solutions and adapt its operations more swiftly to changes in global trade patterns.
