MSC becomes first carrier to break 20% global market share barrier
MSC has become the first container shipping line to command a global liner market share ...
CMA CGM has expressed interest in the Hutchison Port Holdings (HPH) sale in a bid to expand its global port presence, after it reported lower operating margins in the second quarter.
The French ocean carrier reported Q2 revenue of $13.2bn, roughly in line with Q2 24.
Its overall EBITDA sat at $2.3bn, a decrease of 7.9% on the previous year, while its margin was 17.3%, down from last year’s 18.9%.
Net income was also down year on year, at $521m, compared with $661m, and the carrier dubbed its results “an overall stable performance in an uncertain environment”.
The world’s third-largest shipping line transported 5.97m teu in the second quarter, down from Q2 24’s 5.98m teu. It explained: “The near stability in volumes comes in a context of a sharp but temporary decline in trade flows between China and the US during the period.”
The most recent Container Trade Statistics data, updated in May, shows global transported volume increased 3.7% in April and May, indicating that CMA CGM may have lost some market share in its most recent quarter.
Despite the “stability” in volumes, shipping EBITDA fell a huge 19.9%, to $1.6bn, while revenue from overall maritime activity in Q2 was down 1.5% from Q2 24, at $8.2bn.
Average revenue per teu for CMA CGM amounted to $1,367, a decrease of 1.2% on the same period in 2024.
It concluded: “The CMA CGM group remains cautious in an uncertain environment… and will continue to adapt to, and anticipate, market dynamics… to seize profitable growth opportunities.”
Indeed, it was reported yesterday that the French carrier had begun eyeing the sale of CK Hutchison’s global ports business, now the 145-day deadline for exclusive negotiations with the initial bidder, the MSC-Blackrock consortium, expired.
“It’s very important for the industry, and it’s important for us as a major player in this sector,” CMA CGM CFO Ramon Fernandez told reporters during the presentation of the Q2r results.
“We are present in 65 terminals around the world, so we are following this operation very closely and are naturally interested in participating,” he added.
But it is likely to face tough competition.
Chinese authorities had demanded state-owned liner Cosco be part of the original buyer consortium as the price for approval of the deal, denying the sale to MSC/Blackrock due to contention surrounding HPH’s two facilities in Panama – the ownership of which Donald Trump attacked soon after his inauguration.
The proposed circa-$21bn deal involves an 80% equity stake in HPH – excluding its operations in China and shareholding in the Singapore Stock Exchange-listed Hutchison Port Holdings Trust, which owns its Pearl River Delta facilities. The purchase also includes acquisition of HPH’s 90% stake in Panama Ports Co.
But CMA CGM’s strengthening relationship with the US could expose the carrier to scrutiny from China if it looks to acquire a slice of the HPH pie amid a trade war between the two nations.
Alphaliner reported that CMA CGM has formally reflagged the first of several large mainline ships to the US, moving ahead with the commitment chairman and CEO Rodolphe Saadé gave to President Donald Trump in March to expand CMA CGM’s role in the US maritime sector and grow its US-flagged fleet to 30 ships by 2029.
While docked at Charleston, South Carolina, the 9,328 teu CMA CGM PHOENIX was formally transferred from the Singapore register to a US flag on 24 July.
Meanwhile, CMA’s Ceva Logistics subsidiary showed an improvement in EBITDA margin in Q2, despite a slight decline in revenue, “driven by strong momentum in contract logistics operations”.
Revenue was $4.6bn and EBITDA $459m, while margin stood at 9.9%. However, revenue from other activities, like port terminals and air cargo, rose 62.7% to $1bn, with EBITDA at $239m, compared with $51m in Q2 24.
The carrier largely attributed this to the 48% stake it acquired in the leading terminal operator in Brazil, Santos Brasil. And it is yet to be seen if its April takeover of the cargo operations of Air Belgium will also prove a worthwhile investment.
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