CMA CGM Experiences Surge in Cargo Volume Following Easing of China Tariffs
CMA CGM SA, a major player in the shipping industry, is witnessing a notable increase in demand for freight services from China. This uptick comes as trade begins to recover following a temporary agreement between Beijing and Washington to reduce tariffs.
The company,wich ranks as the third-largest container line globally and is led by billionaire Rodolphe Saadé and his family,reported that this surge began after the declaration of a 90-day tariff reduction on May 12.
“we expect trade on this route to pick up significantly in the upcoming weeks,” saeid Chief Financial Officer Ramon Fernandez during their first-quarter earnings call on May 16. He described the agreement as an “undeniably positive progress for maritime logistics.”
Previously, CMA CGM faced a dramatic drop in freight bookings for exports from China to the U.S., with tariffs imposed by both nations leading to nearly halved volumes. Though, recent trends indicate that demand is bouncing back at an remarkable rate.
“There’s definitely going to be some catching up,” he noted. “While we can’t predict what will happen post-90 days,it’s likely that there will be a rush of goods needing transport during this period.”
The uncertainty stemming from president Trump’s tariffs has posed challenges for CMA CGM throughout this year. A decline in demand along transpacific routes had previously driven down spot container rates; however, these rates have started climbing again since news of tariff relief broke.
Other shipping giants like A.P. Moller-Maersk A/S from Denmark and Germany’s Hapag-Lloyd AG are also reporting increased activity recently. Both companies have seen their stock prices rise significantly following their vessel-sharing partnership established earlier this year.
CMA CGM announced its first-quarter profit reached $1.12 billion—up from $785 million last year—highlighting how global trading disruptions can still yield financial success. Shipping volumes grew by 4.2%, while sales jumped by 11.5%.
Meanwhile, ongoing attacks by Houthis on vessels traversing the Red Sea have forced CMA CGM ships to navigate through these waters only occasionally and under military protection due to safety concerns.
U.S.-china Relations
CFO Fernandez mentioned that these measures might not disrupt operations as much as initially anticipated since less than half of CMA CGM’s fleet consists of vessels built in China.
“We can adjust our fleet so that ships constructed elsewhere can service U.S ports,” he explained confidently.
This adaptability was further underscored when Saadé announced plans for $20 billion worth of investments into U.S operations over four years—a move expected to create around 10,000 jobs within shipping and logistics sectors while posing alongside Trump at the White House.
Apart from its American ventures—which include American President Lines LLC responsible for transporting government cargo—CMA CGM maintains strong ties with Chinese shipping firms.
The OCEAN Alliance partnership among CMA CGM; Cosco Shipping (China); evergreen Line (Taiwan); and OOCL (Hong Kong) was recently extended until 2032—a testament to collaborative efforts despite geopolitical tensions.
On May 16th Fernandez confirmed no inquiries had been made regarding their alliance with Chinese carriers amidst ongoing discussions about international relations.
The Saadé family’s wealth stands impressively at $38.4 billion according Bloomberg Billionaires Index—a reflection not just of personal fortune but also strategic business acumen within fluctuating markets!...... . . .. . . . . .. .. .. .. … … … ……. ……. ……. ………. ……………….. ………. …………….
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