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CMA CGM profits soar thanks to shipping rush By Reuters

© Reuters. FILE PHOTO: A fisherman travels on a boat past a CMA CGM container ship crossing the Suez Canal in Ismailia, Egypt, July 7, 2021. REUTERS / Amr Abdallah Dalsh

PARIS, Reuters

French company CMA CGM, one of the world’s largest container companies, said its net profit reached $ 5.6 billion in the third quarter, up from $ 567 million in the same period last year, while core EBITDA profit increased from $ 1.7 billion to $ 7.1 billion.

An economic rebound from a coronavirus pandemic has disrupted supply chains and exacerbated logistical challenges such as aging infrastructure and a shortage of drivers.

Maersk, the world’s largest container line, said this month that port delays would persist until next year.

“The pressure on the effective shipping capacities of consumer goods observed since the summer of 2020 should persist at least until the first half of 2022”, declared CMA CGM.

“The current context is therefore likely to allow the Group to achieve an even more solid financial performance during the fourth quarter.

The group, which is privately controlled by the Saade family, increased its transport capacity by nearly 6% over one year until September 2021, he said.

The company has also grown as Maersk in non-maritime transport, with the acquisition of CEVA Logistics two years ago and the creation this year of an air freight division.

As part of its air freight push, CMA CGM announced on Friday with Airbus an order for four A350F cargo planes.

The rise in profits allowed CMA CGM to step up its investments this year, notably the proposed acquisition of a port terminal in Los Angeles for around $ 2 billion.

The group also said its net debt fell sharply to $ 11.9 billion as of September 30, down $ 4.9 billion from the end of last year.

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