PARIS, Nov 8 (Reuters) – CMA CGM said on Friday that strong global demand pushed up its third-quarter profit amid a rush of shipments from China in the quarter, as it played down the possibility of shipping from China. Trade risk tariffs on U.S. imports.
The French company reported third-quarter net profit of US$2.73 billion, up from US$388 million in the same period last year, mainly due to a 5.5% increase in sales at its main shipping unit.
Like other shipping lines, CMA CGM has benefited from restocking by U.S. companies this year, further fueled by concerns that geopolitical tensions and recent labor disputes at U.S. east coast ports will hurt trade.
Businesses are waiting to see whether Donald Trump will impose tariffs on China and other countries as he promised during his US presidential campaign.
China’s exports grew at their fastest pace in more than two years in October, which analysts saw as a sign of loading ahead of potential U.S. and European Union tariffs.
“We observe that demand remains strong and expectations for the Chinese New Year appear to be earlier than usual,” CMA CGM Chief Financial Officer Ramon Fernandez told reporters by phone.
He said that while it was too early to predict the impact of the incoming President Trump on trade flows, the global economy appeared to be strong, previous experience suggested that tariffs could be adjusted, and Mexico and Southeast Asia accounted for China’s share of U.S. imports. share.
He said that as new ships entered the market, freight rates fell from the peak in late July, and favorable demand helped stabilize freight rates. words.
Ships have been diverted away from the Red Sea due to attacks by Yemen’s Houthi rebels, lengthening routes between Asia and Europe but benefiting operators by absorbing fleet capacity and raising freight rates.
In France, CMA CGM continues to assume it will face a special tax of about 800 million euros ($861.44 million) on its shipping profits as part of government proposals to curb the budget deficit, Fernandez said.
He added that the tax would reduce its investment, but it was too early to say which projects might be affected.
($1 = 0.9287 euros) (Reporting by Gus Trompiz; Editing by Louise Heavens)
