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Carrier has paid down its debt and invested in sectors adjacent to its shipping concerns. Warns that inflationary environment is clouding outlook for economic growth<\/p>\n
CMA CGM expects to see a faster return to more normal freight rates in the fourth quarter and lower margins as geopolitical tensions reduce demand and increase its costs.<\/p>\n
To mitigate this, the company has made significant inroads into its debt repayments while strengthening its shipping, ports, logistics and air freight capabilities.<\/p>\n
The third quarter had already been shaped by \u201cpersistent geopolitical tensions\u201d that had spurred higher inflation and dragged down consumer spending, which was already moving returning to higher services spending following the pandemic, the company said in its third-quarter results.<\/p>\n
\u201cThe group was also impacted by the unstable geopolitical situation, specifically by the increase in unit bunker costs driven by higher energy prices,\u201d CMA CGM said.<\/p>\n
\u201cOn a like-for-like fuel consumption basis, these higher energy prices led to a year-over-year increase of $822m in bunker costs in the third quarter of 2022. The slowdown in shipping demand pushed down spot freight rates, particularly on main east-west routes.\u201d<\/p>\n
Group revenues were up 30% year on year to $19.9bn in the third quarter, but higher costs meant that operating earnings were down 4.6% from the previous quarter at $9.2bn. Net profit of $7.04bn fell by $563m when compared with the corresponding quarter of 2021.<\/p>\n
But the group continued to strengthen its balance sheet. Net debt fell $5.3bn during the quarter to just $78m.<\/p>\n
\u201cThe CMA CGM group once again recorded strong results in the third quarter,\u201d said chief executive Rodolphe Saad\u00e9. \u201cOver the past two years, we have significantly strengthened our financial structure and developed our business through the entire supply chain.\u201d<\/p>\n
Declining demand had prompted a return to \u201cmore normal\u201d international trade flows and a significant reduction in freight rates, he added.<\/p>\n
\u201cIn this new environment, we will continue to invest to strengthen our positioning in maritime shipping and logistics, accelerate our energy transition and provide our clients with even more efficient solutions.\u201d<\/p>\n
CMA CGM said that a number of acquisitions since the start of the year, including that of Gefco, which was approved by competition authorities during the third quarter, had helped strengthen its Ceva Logistics subsidiary.<\/p>\n
Revenues in its logistics division were up by over 50% to $4.4bn from the corresponding quarter of 2021.<\/p>\n
It had also boosted its terminals portfolio during the quarter, with the joint-venture tender win for the privatisation of the Nhava Sheva terminal in India, while its CMA CGM Air Cargo business had launched its Paris-Hong Kong service following the delivery of its first two new Boeing 777 freighters.<\/p>\n
CMA CGM\u2019s full-year results will likely set another record for the company, but the outlook for the following years is definitely less optimistic now.<\/p>\n
\u201cThe health crisis and the shifting consumer spending patterns that drove strong demand during lockdowns have placed unprecedented strain on the world\u2019s supply chains,\u201d it said.<\/p>\n
\u201cThese strains are tending to subside in the wake of recent developments in world trade, reflecting a much more uncertain economic environment, which is being deeply affected by geopolitical tensions.\u201d<\/p>\n
Source: The Lloyd\u2019s List<\/p>\n","protected":false},"excerpt":{"rendered":"
Carrier has paid down its debt and invested in sectors adjacent to its shipping concerns. Warns that inflationary environment is clouding outlook for economic growth CMA CGM expects to see a faster return to more normal freight rates in the fourth quarter and lower margins as geopolitical tensions reduce demand and increase its costs. To …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[78],"tags":[85,84],"class_list":["post-2114","post","type-post","status-publish","format-standard","hentry","category-news","tag-container-lines","tag-maritime"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts\/2114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/comments?post=2114"}],"version-history":[{"count":1,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts\/2114\/revisions"}],"predecessor-version":[{"id":2116,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/posts\/2114\/revisions\/2116"}],"wp:attachment":[{"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/media?parent=2114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/categories?post=2114"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ems.cohesionfreight.com.hk:8080\/wordpress\/wp-json\/wp\/v2\/tags?post=2114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}