600%! CMA CGM exploded and skyrocketed!
Sunny Worldwide LogisticsIt is a logistics company with more than 10 years of transportation experience, specializing in markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~
CMA CGM announced its third quarter 2024 results on November 9. The financial report disclosed that in the third quarter of 2024, CMA CGM Group performed strongly.
In the third quarter of 2024, the CMA CGM Group achieved total operating income of US.83 billion, a year-on-year increase of 38.5%; profit before interest, taxes, depreciation, and amortization reached US.96 billion, a year-on-year increase of 148.6%; EBITDA profit margin increased by 13.9 percentage points year-on-year to 31.4% ; The group’s net profit reached US.73 billion, an increase of US.34 billion or 603.6% compared with the same period last year.
In the first three quarters of 2024, the CMA CGM Group achieved total operating income of US.80 billion, a year-on-year increase of 12.0%; EBITDA reached US.83 billion, a year-on-year increase of 22.5%; EBITDA profit margin increased by 2.1 percentage points year-on-year to 24.1%; in the first three quarters, the group’s net Profit reached US.18 billion, a year-on-year increase of 12.0%.
CMA CGM stressed that its container shipping business continues to maintain a stable momentum, benefiting from continued demand, the advance of the "peak season" and the acceleration of global trade, while the Red Sea crisis has led to extended voyages and reduced available capacity. These disruptions created operational challenges, which CMA CGM responded flexibly to meet customer needs and ease pressure on the supply chain.
In the third quarter of 2024, CMA CGM completed a container load of 6.04 million TEU, a year-on-year increase of 5.6%. This growth was mainly driven by strong demand from global trade.
Strong demand has amplified the peak season effect. At the same time, shipping capacity is still subject to certain constraints due to some ships sailing around the Cape of Good Hope and factors expected in advance in the global uncertain environment. The strong demand not only amplifies the usual peak season effect, but also makes the peak season start earlier than in previous years.
During this quarter, shipping business revenue reached US.9 billion, a year-on-year increase of 43.4%. Earnings before interest, taxes, depreciation and amortization (EBITDA) reached US.4 billion, and the profit margin increased to 40.2%. Average revenue per TEU was US,798, demonstrating further improvement in profitability.
According to the latest data from Alphaliner, among the top 100 global liner companies in terms of shipping capacity, CMA CGM ranks third globally, operating 647 ships, including 292 owned ships and 355 chartered ships, with a total space of 3.798 million TEU. In addition, CMA CGM also holds 81 new shipbuilding orders totaling 1.182 million TEU.
CMA CGM recently announced that it will re-launch its route services across the Red Sea. According to the latest sailing plan on the company's official website, the company will adjust its "Indo-American Express" ("INDAMEX") route to pass through the Suez Canal from mid-November.
The adjustment to the route means its voyage will be shortened to 11 weeks, with one ship sailing every week, compared with the previous 12-week voyage.
In the plan, this route will deploy 11 ships with a capacity between 8,500 and 9,950 TEU, calling at major ports in the following order: Port Qasim, Navasheva, Mundra, Jeddah, and Damietta , Tangier Port (only westbound calls), New York, Norfolk, Savannah, Charleston, and finally return to Damietta, Jeddah, until returning to the starting point of Port Qasim.
The round-trip service of these ships will cover the main shipping needs from the Indian subcontinent to the East Coast of the United States, while also smoothly crossing the Red Sea area through the Suez Canal.
Alphaliner stated that CMA CGM is currently the only large-scale container shipping company that sends its ships to the Red Sea route.
In the Red Sea route, CMA CGM’s ships are currently not threatened by any Houthi armed forces. It is believed that this is due to the cargo it transports, including container cargo from Beirut and Tripoli in Lebanon, which allows it to maintain smooth navigation in the Red Sea region..
By reopening the Red Sea route, CMA CGM has once again demonstrated its flexibility and adaptability in the global shipping market, while also strengthening its trade chain between the Indian subcontinent and the east coast of the United States.
