CMA CGM braces for weaker earnings ahead of demand rebound in 2024

According to CMA CGM, a French ocean carrier, container cargo demand is expected to improve from next year, but due to the weak state of the economy and the drop in freight rates the group’s profits will continue to decline.

They report a net profit in the second quarter of $1.3 billion dollars, being 80% below the same period of the previous year, in the first quarter the profits were $2 billion dollars; The group expects the first quarter to have been the most profitable this year.

Ramón Fernández, financial director of CMA CGM, mentions that they were already prepared for this drop in demand and continue to manage their activities in the context of low global demand, likewise, he mentions that a progressive recovery should be seen from the next two years.

Add, Fernández, that international freight rates have been stabilizing in recent weeks, and that the company has raised some prices since August 1.

For importers and exporters, this represents an opportunity to take advantage of the value of current rates to continue moving cargo at a competitive price, at least for the remainder of this year. According to the predictions of carriers, such as CMA CGM, these rates will increase as demand rises due to the improvement in the state of the economy.