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According to BusinessDialogue, French shipping giant CMA CGM saw a significant decline in revenue, earnings, and profits in the first quarter of this year compared to the same period in 2022. Revenue reached $12.7 billion, down 30.2%, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 61.3% to $3.4 billion, and net profit fell from $7.2 billion in the first quarter of 2022 to $2 in Q1 2023. The detailed data is as follows:

Although these numbers are significantly lower than the previous year’s level, CMA CGM pointed out that the financial performance for the next three quarters of this year is expected to be even weaker. “In this environment, as the group’s financial performance continues to recover, the first quarter is expected to be the best quarter of the year,” the Marseille-based company confirmed in a statement.

CMA CGM added, “The trend in the fourth quarter of 2022 is still playing out in the first quarter of 2023. The market conditions in the transportation and logistics industry are challenging, and the freight demand continues to slow down, stimulating rapid normalization of spot prices.”

Meanwhile, the world’s third-largest container shipping company completed the transportation of 5 million TEUs in the first quarter of this year, a year-on-year decrease of 5.3%.

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The shipping company stated that “the trend in the second half of 2022 continues to prevail in 2023, and the situation in the transportation and logistics industry is deteriorating.” The macroeconomic forecast for 2023 predicts that global GDP will grow moderately, dragging down consumer spending in OECD countries due to inflation pressures.

However, according to CMA CGM, this may stabilize later this year. CMA CGM said, “The new capacity to be delivered in the coming quarters is expected to continue to put pressure on container shipping rates.”

Business Dialogue learned that Rodolphe Saadé, Chairman and CEO of CMA CGM Group, commented, “After two years of outstanding performance, our industry has entered a normalization phase due to the global growth slowdown, inflation and destocking still present in many parts of the world.”

He continued to emphasize, “Despite the deteriorating environment, our first quarter results are very robust. They are the result of our investment – more than 30 billion US dollars invested over the past two years – which allows us to continuously expand and strengthen our business, providing our customers with a range of transportation and logistics solutions.”

Editor ✎ Estella/AMZ123

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