CMA CGM na kursie inwestycji, informatyzacji i dekarbonizacji.

By Marek Grzybowski

In Q2 of this year, the CMA CGM Group maintains revenue dynamics despite disruptions on the main liner connections. Although operating profit in Q2 fell by 4% year-on-year, the company’s condition is still excellent. CMA CGM continues to modernize and develop its fleet of ships. New ships are more modern, innovative and environmentally friendly. CMA CGM is actively participating in the decarbonization of shipping.

The CMA CGM Group bases its operations on a fleet of 623 ships. These are container ships with a total capacity of 3 million TEU. The shipowner emphasizes that the company is characterized by diversity and innovation. The operator emphasizes that it offers ships of all types for transport, and a whole package of the latest technologies in the field of safety and environmental protection is being introduced to serve customers. This is manifested by the constant addition of new container ships to the fleet.
The CMA CGM fleet is one of the most modern in the world and is constantly being expanded. Technologically advanced ships that are more environmentally friendly are being introduced. The shipowner is building 57 new ships in Asian shipyards, which are being gradually added to the fleet by 2025. The shipowner has focused mainly on ships with gas-powered engines. E-methane is also planned. The diversification of the fleet is well illustrated by the order portfolio.

Fleet development and computerization
In the coming years, the operator intends to receive from the shipyard: 6 ships of 15,000 TEU, 6 container ships of 13,000 TEU and the same number of 8,000 TEU. There are also plans for 3 ships of 7,900 TEU and 10 ships with a capacity of 7,300 TEU, 2,000 TEU and 5,500 TEU. The latter will be powered by low-sulfur VLSFO fuel. 6 ships of 5,900 TEU have also been ordered with the same power supply. The engines used in the new ships already have the technical possibility of operating on e-methane (instead of LNG). The fleet “ready for e-methane” will consist of 61 ships by the end of 2025.

The modernization concerns not only the ships’ propulsion systems. The Group has formed a strategic partnership to increase the use of artificial intelligence in all entities. Using Google software, CMA CGM will actively strive to optimize ship routes, container handling and inventory management.

The idea is to ensure efficient and timely delivery of goods while minimizing costs and carbon footprint – informs the operator. We wrote more about it here.

CMA CGM Group operates not only in the liner maritime transport market. It is also a global logistics operator on land and air and logistics connections. A few days ago, the Group’s board of directors met under the chairmanship of Rodolphe Saadé, President and CEO. The subject of the meeting was an analysis of the economic results of the individual activities of the Marseille-based company.
Commenting on the results for the period, Rodolphe Saadé, President and CEO of CMA CGM Group, said: “In the face of sustained demand, our Group delivered solid results in the second quarter, with a dynamic shipping business and a growing logistics pillar.”

“We were able to adapt [to market changes – MG], reallocating capacity in response to operational challenges caused by the severe disruptions on major shipping lanes. The Group made key investments to accelerate the decarbonization of the industry through fleet renewal and modernization, and continued digital transformation, leveraging artificial intelligence,” Saadé said.

Highlights of Q2 2024
The CMA CGM Group delivered strong results in Q2 2024, despite a turbulent period for global trade. The main factor influencing shipping results was the continued demand for cargo. The extension of liner services and their maintenance costs were affected by ongoing geopolitical tensions, particularly in the Red Sea region.

CMA CGM explains that “These tensions continued to hamper the fluidity of global trade in the second quarter, causing bottlenecks in some regions. At the same time, volumes moved increased sharply compared to the same period in 2023, when US distributors began to draw down their inventories, but also compared to Q1 2024.”

The continued demand for containers was influenced by the fact that demand for industrial goods in Western countries remained high in Q2. Household consumption has not declined significantly, while inflation has slowed due to tight monetary policy, CMA CGM management said.
To support customers during the peak of orders for cargo from Asian ports and to ease pressure on supply chains, CMA CGM launched the French Peak Service. This ad hoc liner service was designed to add additional cargo capacity to meet the high demand for cargo shipping between Asia and Europe.
The CMA CGM Group has maintained its program of investment and capacity expansion this year. The Group has placed orders for twelve 15,000 TEU gas-powered vessels with shipyards. The manufacturer will be Hyundai Heavy Industries.
This order is part of CMA CGM’s fleet renewal program. The Group’s strategic goal is to achieve net zero carbon dioxide emissions by 2050. This includes entering the ship service sector at the end of 2027.
The CMA CGM Group continues to integrate Bolloré Logistics following its acquisition, which was completed at the end of February 2024. From now on, CEVA Logistics and Bolloré Logistics will operate under one brand – CEVA Logistics – one of the five leading logistics operators in the world. The Group recently strengthened its activities in the media market with the acquisition of RMC BFM on 2 July.

Revenues and profits in the black
CMA CGM’s good operational and financial results for the second quarter of 2024 were significantly influenced by the sharp increase in spot freight rates, which started in the first quarter and continued in the second. In the face of continued demand for container transport, the operator had to approach the market flexibly.
The decision was made to avoid the Suez Canal, as the situation and threats in the Red Sea caused vessels to be redirected to routes around Africa. The extension of services around the Cape of Good Hope continued to limit available cargo space and capacity on services between Asia and Europe.
Group revenues amounted to USD 13.1 billion in the second quarter of 2024, an increase of 6.8%. CMA CGM management believes that this result “reflects stable year-on-year revenues from the shipping business and higher revenues from the logistics business, strengthened by the consolidation of Bolloré Logistics from 29 February 2024.” EBITDA totaled USD 2.48 billion, down 4.3% compared to the same period last year. Margin was 18.9%, down 2.2% compared to Q2 2023.
The Group recorded net sales of USD 661 million. In this case, a decrease of USD 670 million was recorded. In addition to the operating results, the income was influenced by CMA CGM’s contribution to the trust fund launched with Bpifrance for the decarbonization of the French shipping industry and the contribution to the major project of the port in the West Indies.
There was also a commitment to finance the KYUTAI foundation, the first independent European research laboratory dedicated to the study of artificial intelligence (AI) applications. This activity of CMA CGM Group will allow it to participate in the process of decarbonization and digitalization of shipping and logistics in accordance with the public interest, emphasizes the shipowner from Marseille.

Maritime transport and logistics
A total of 6 million TEU were transported in the second quarter of 2024, which is an increase of 6.8% compared to the same period in the previous year. This increase is due to the dynamics of global trade in goods and the continuing demand for cargo transport between the main markets. The decisive factor was the continued consumption of households and the continuous rebuilding of stocks on the European and American markets. This constant was therefore felt mainly by services in the Pacific and connections between Asian and EU ports.

Consolidated revenues from maritime transport amounted to USD 8.29 billion in the second quarter of this year. There was a decrease of 0.8% compared to the second quarter of 2023. EBITDA amounted to USD 2 million, which is 9% less than in the second quarter of 2023. The EBITDA margin was 23.9%, which is a decrease of 2.2%. The average revenue per TEU was USD 1,385, down 7.1% year-on-year.

The Group’s logistics activities continued to grow in the second quarter, thanks in particular to the activity of Bolloré Logistics and the good dynamics of services provided in contract logistics, finished vehicle logistics and road transport, especially in Europe.

Revenues from logistics operations totaled USD 4.79 billion in the second quarter of the year. EBITDA was USD 450 million, up 28.8% compared to the second quarter of 2023.
Revenues from other activities (port terminals, CMA CGM Air Cargo, media, etc.) increased by 23.8% to USD 601 million. EBITDA was USD 48 million. Here, profits fell by 25.5%.
All CMA CGM media activities have now been consolidated under CMA Media, which includes the press division (La Provence, Corse Matin, La Tribune, La Tribune Dimanche) and the audiovisual division based on RMC BFM. CMA CGM management forecasts that “The unstable macroeconomic and geopolitical environment may continue to impact the operational and financial liquidity of shipping and logistics”. In the near term, it is recommended to act “with a focus on cost control and operational discipline”. The CMA CGM Group will continue to invest in tonnage and digitalization. The aim is “to offer customers the highest level of service and continue to decarbonize shipping and logistics”.