Shipping giant CMA CGM sees cargo jump after China tariff relief

By Admin

20 May, 2025

The global shipping industry is witnessing a resurgence in demand, and leading the charge is CMA CGM SA, the world’s third-largest container shipping company. The Marseille-based shipping giant, controlled by billionaire Rodolphe Saadé and his family, has reported a significant uptick in freight transport demand out of China following a temporary tariff truce between Beijing and Washington.

Tariff Truce Sparks Trade Revival

The upswing follows the announcement of a 90-day reduction in levies earlier this week, a move that has triggered renewed momentum in trade between the world’s two largest economies. CMA CGM’s Chief Financial Officer Ramon Fernandez emphasized this positive development during the company’s first-quarter earnings presentation.

“Trade will restart on this route very, very vigorously in the coming weeks and months,” said Fernandez, describing the agreement as an “indisputably positive signal for maritime transport.”

From Slump to Surge

CMA CGM had previously experienced a drastic reduction in freight bookings for China-to-US exports due to triple-digit tariffs imposed by both nations. Fernandez revealed that the recent revival in trade demand is of the same magnitude as the earlier decline, indicating a strong bounce-back.

“There is most certainly going to be significant catching-up behavior,” he added. “No one really knows what’s going to happen after the 90 days, so we can expect that whatever needs transporting will be transported during the first half of this year.”

Global Carriers See Similar Gains

The impact of the tariff relief is being felt across the shipping industry. Danish giant A.P. Moller-Maersk A/S and Germany’s Hapag-Lloyd AG, both part of a vessel-sharing agreement with CMA CGM since February, also reported increased activity. Their shares are tracking the strongest weekly gains of the year.

CMA CGM’s financial results underscore the resilience of the industry. The company posted a first-quarter profit of $1.12 billion, up from $785 million a year earlier. Shipping volumes rose by 4.2%, while sales surged 11.5%.

Geopolitical Challenges and Adaptation

While the tariff relief offers temporary respite, other challenges remain. Ongoing Houthi attacks in the Red Sea continue to disrupt global shipping routes. Fernandez noted that CMA CGM vessels now only transit the area with French or Italian military escorts. “The Red Sea shipping disruptions observed throughout 2024 persist,” the company confirmed.

In parallel, the Trump administration is exploring new measures to counter China’s maritime influence, including imposing fees on Chinese-built ships. However, Fernandez downplayed the potential impact, pointing out that less than half of CMA CGM’s vessels are built in China. “We can organize our fleet so that ships built elsewhere will call at US ports,” he explained. “It’s manageable and we’ll adapt.”

Expanding US Footprint

Demonstrating its commitment to the US market, CMA CGM announced a $20 billion investment over four years, aiming to create 10,000 jobs in shipping and logistics. Saadé publicly revealed this plan alongside former President Trump at the White House in March.

CMA CGM's US operations include American President Lines LLC, a unit that handles government and military cargo. Despite geopolitical complexities, the company maintains a robust relationship with Asian partners. Its alliance with Cosco Shipping (China), Evergreen Line (Taiwan), and OOCL (Hong Kong) under the OCEAN Alliance was recently extended to 2032.

Interestingly, Fernandez confirmed that the Trump administration has not raised concerns about CMA CGM’s alliance with China-affiliated carriers.

Conclusion

The recent developments signal a promising rebound for global shipping, driven by policy shifts and strategic adaptations. As trade flows begin to normalize, CMA CGM stands at the forefront—navigating challenges with resilience while capitalizing on renewed global demand.