CMA CGM has become the latest carrier to reveal a significant earnings lift for 2024 off the back of Red Sea reroutings, as the French carrier warned of the negative trade impact of higher tariffs for the year ahead.

The world’s third-largest operator of containerships posted group revenues of $55.5bn for 2024, up 18% year on year, in an increase the Marseille-based company attributed firmly to its liner activities.

“After a year of normalisation for the transport and logistics industry in 2023 following the Covid pandemic, 2024 saw increased demand for maritime container shipping,” said CMA CGM.

“While buoyed by stronger-than-expected growth in world trade and inventory rebuilding, global capacity faced a negative shock from geopolitical tensions.”

CMA CGM carried 23.6m teu last year, up 7.8% on 2023, while revenues from the group’s container shipping segment grew 16.2% to $36.5bn.

In terms of the group’s most recent performance, the fourth quarter, container volumes improved 7.8% to 5.9m teu from 5.5m teu for the corresponding quarter of the previous year, as revenues from the container shipping side of the business climbed nearly 44% to $9.5bn.

Revenues per feu in the fourth quarter came in at $3,204, up 33.5% on 4Q23, but down 10.8% on the previous three-month period (3Q24) reflecting the wider trend in weakening freight rates.

CMA CGM said it expected global trade to grow in line with stable global economic growth of around 3%.

“Nevertheless, the prospect of higher tariffs announced in the US could have an impact on trade and lead to a reorganisation of global supply chains in the medium term,” it said.

The group also noted that the delivery of new vessels and ongoing Red Sea developments “will be decisive factors in shaping the market”.

“In this environment, the group remains prudent and is paying close attention to the changing economic and geopolitical situation, while remaining confident in its ability to weather the cycle thanks to its business diversification and financial strength.”