CMA CGM SA, the world's third-largest container shipping company, reported a substantial 2024 profit of $5.71 billion, significantly up from a $90 million loss the previous year. This profit surge was partly attributed to an increase in freight rates caused by Houthi attacks in the Red Sea and clients stockpiling goods in anticipation of new US tariffs.
Despite this financial success, the Marseille-based giant is preparing for significant disruption from potential US President Donald Trump's trade policies. These include higher tariffs, particularly targeting China, and a new US maritime policy that could mandate a portion of US products be moved on American vessels and impose fees on Chinese-built ships. CMA CGM is especially vulnerable due to its extensive global operations and its long-term partnership with Chinese shipping companies through the Ocean Alliance, extended to 2032.
Chief Financial Officer Ramon Fernandez noted that ongoing demand for transport and logistics remains strong due to potential trade and supply chain disruptions. He highlighted that over half of all container ships are built in China, making any tariffs targeting China profoundly impactful on all shipping companies. CMA CGM is actively working with clients to develop solutions in preparation for these potential changes.
In addition to the forthcoming US trade challenges, CMA CGM will also incur approximately €500 million from a temporary corporate tax increase in France, designed to help reduce the nation's deficit. This levy impacts other large, profitable French companies such as Electricite de France and L'Oreal SA.
CMA CGM, controlled by the Saadé family, whose wealth is estimated at $31 billion, has expanded its presence in the US by acquiring major container terminals in Los Angeles, New York, and New Jersey. The company also operates US-flagged vessels via its subsidiary, American President Lines. Fernandez indicated that while the Ocean Alliance is robust, its strategy might need adaptation in the coming years due to the evolving global trade landscape.
