The container shipping industry is bracing for a challenging year as new vessels boost capacity while demand slows, French group CMA CGM said on Friday, citing early orders in 2025 driven by trade tensions.
CMA CGM, the world’s third-largest container line, reported on Friday core EBITDA (earnings before interest, taxes, depreciation and amortisation) of $2.96 billion for the third quarter. That was down 40.5 per cent from a year earlier but up from the previous quarter, as volumes recovered from an April halt to China-US trade amid a tariff standoff.
The group, controlled by the Saade family, expects fourth-quarter results to fall below the third-quarter performance due to falling freight rates, before what could be a difficult 2026 for shipping, Ramon Fernandez, its chief financial officer, said.
"What we anticipate is that freight rates may continue to normalise with less active demand and with increased capacity given new vessels being delivered and with the possible reopening of the Suez route during 2026," he told Reuters.
Rivals, such as Maersk, have also warned of pressure from declining freight rates.
Disruption to shipping through the Red Sea and Suez Canal, because of attacks by Houthi rebels in Yemen, has absorbed some capacity with ships taking a longer route around southern Africa.
A ceasefire in the Gaza war, which the Houthis cited as their reason for targeting vessels, raised expectations that traffic may return to normal. For now, CMA CGM is maintaining limited Suez transits when security allows, Fernandez said.
Tensions between Washington and Beijing also weighed on the industry after the two sides announced port fees on vessels with links to the other country.
CMA CGM reorganised its fleet to avoid the fees and Fernandez said the company does not plan to rejig its fleet again after the port fees were suspended for a year.
The company has contributed to rising ship supply and based on current orders will overtake Maersk as the world’s second-largest container line by capacity at the end of 2027, Fernandez added.
CMA CGM and the Saade family have also pursued diversification into logistics, port terminals and non-transport activities, including the acquisition of a stake in Carrefour, Europe’s largest food retailer.
(Reporting by Gus Trompiz, Editing by Louise Heavens)
