Marseille - Commenting on the results for the year, Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said:
“As our sector normalized, the Group's performance remained solid in 2023. Shipping market conditions deteriorated progressively during the year. Our results are down as we expected. Logistics, on the other hand, is proving more resilient, and accounts for a significant part of our business. Our Group now stands on two solid pillars, which will enable us to weather cyclical changes more efficiently. Backed by our financial strength and the commitment of our employees, we will continue to invest in the transformation of the Group, particularly decarbonization and artificial intelligence, in order to pursue our sustainable and profitable development.”
During its meeting, the Board of Directors approved the consolidated financial statements for the year ended December 31, 2023.
After two extraordinary years in 2021 and 2022, the transport and logistics industry experienced a year of transition and normalization in 2023. In late 2022, widespread inflation began to weigh on household purchasing power in Europe and the United States, dampening demand for consumer goods. The decline in demand was exacerbated by major inventory reductions in the first half of 2023, as supply chains readjusted.
2023 also saw a slowdown in economic growth after the strong post-pandemic recovery, with rising inflation and a shift in consumer spending to services. These factors pushed down demand for shipping and logistics services.
Despite this challenging environment, the CMA CGM Group leveraged its financial strength to pursue its strategy of investing in its shipping, port, logistics and air freight capabilities, while maintaining its commitment to the energy transition.
For the maritime shipping industry, 2023 was a year of contrasting halves. Behind the relative stability in volumes transported by the Group’s shipping lines over the full year (up 0.5%) lay major disparities between the first and second halves, as well as among the main shipping routes.
In comparison to 2022, 2023 volumes carried by the Group on the North-South routes (up 4.2%) and intra-regional lines (up 3.3%) proved more resilient than on the East-West routes (down 2.7%), thanks in particular to the sustained robust growth of certain emerging economies.
In addition, CMA CGM continued to invest in industry-leading port infrastructure in 2023.
In the United States, it completed the USD 2.8 billion acquisition of the GCT Bayonne and New York container terminals, now renamed Port Liberty Bayonne and Port Liberty New York. The acquisition has strengthened CMA CGM’s footprint on the US East Coast, supplementing its presence on the West Coast with the FMS terminal in Los Angeles.
In Nigeria, in February 2023, the Group inaugurated phase 1 of the new-generation Lekki Freeport multi-user container terminal, bringing the number of terminals and port projects in which CMA CGM has invested to 58.
In 2023, the CMA CGM Group pursued its strategy of developing an integrated suite of logistics solutions to support its customers’ supply chains. Following the acquisition of CEVA Logistics in 2019 and Ingram Micro CLS, Colis Privé and GEFCO in 2022, the Group continued its transformation in 2023 with an agreement to acquire Bolloré Logistics, which will make it one of the world's top five providers of transport and logistics services.
CMA CGM AIR CARGO
CMA CGM AIR CARGO continued to expand over the year and now operates a fleet of five aircraft, which will be strengthened in 2024 with the delivery of two Boeing 777F freighters.
Specialty maritime shipping
In 2023, the Group consolidated into a single specialty maritime shipping department its car carrier business and La Méridionale, a Marseille-based company which operates ro-pax cargo and passenger ships whose acquisition was completed in 2023. Attesting to its ambition for La Méridionale, the Group also announced that it has ordered two LNG-powered ships for the company, which will sail under the French flag, using the first register categoryr. The vessel’s design will deliver both unrivalled passenger comfort and improved environmental performance, with a 50% reduction in CO2 emissions.
In 2023, the CMA CGM Group continued to support its decarbonization strategy and invest in improving the environmental performance and energy efficiency of its operations.
Through its Foundation and the engagement of its 155,000 employees operating in 160 countries, the Group once again demonstrated its values by undertaking initiatives around the world in response to humanitarian crises and to support education.
The CMA CGM Group is committed to achieving net-zero carbon emissions by 2050 and intends to accelerate the energy transition in shipping and logistics. In 2023, the Group reduced its CO2 emissions by around one million tonnes.
The CMA CGM Group has initiated a number of ambitious partnerships to step up the energy transition in the maritime shipping and logistics industry. At the COP28 conference, Rodolphe Saadé announced a collaborative venture with the chief executives of the world’s leading shipping companies, proposing a shared vision and solutions-oriented measures to decarbonize the industry.
2024 is likely to be shaped by sluggish global economic growth, although global trade for goods is expected to rebound from 2023 lows, driven by consumer spending and replenishing inventories. Volume growth should remain strong in the first half, supported by these base-line effects, but the second half looks more uncertain.
In addition, new container shipping capacity is expected to come into service, pushing global supply in excess of forecasted demand, and leading to an anticipated adverse impact on freight rates.
However, late 2023 saw the emergence of new geopolitical tensions with the situation in the Red Sea and the targeted attacks on merchant ships, creating risks and major uncertainties for the maritime shipping industry.
In this environment, the Group is paying close attention to the changing economic and geopolitical situation, while remaining confident in its ability to weather the cycle thanks to its business diversification and financial strength.
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