Why did CMA CGM's earnings fall despite volume growth?

CMA CGM volumes grew only 1.5% year-over-year to 5.9 million TEUs, while average revenue per TEU fell 9.8% to $1,351. Freight rates declined significantly across the board, and the EBITDA margin contracted 10.3 percentage points to 18.6%, indicating the carrier could not offset weak pricing with volume gains. This reflects persistent industry overcapacity.

How does the Red Sea situation impact CMA CGM's competitive position?

CMA CGM, with Lebanese family roots, has been one of the few carriers to maintain scheduled Red Sea services despite Houthi attacks since 2023. This operational resilience provides a competitive advantage and demonstrates management's ability to navigate geopolitical complexity while maintaining customer service reliability.

What is the strategic significance of the Stonepeak partnership?

CMA CGM partnered with Stonepeak to establish United Ports LLC, a global port joint venture encompassing 10 strategic terminals across North America, Europe, Latin America, and Asia. Stonepeak will invest $2.4 billion for a 25% stake. This diversifies CMA CGM's revenue beyond container shipping and provides vertical integration into port operations.

What should shippers expect regarding freight rates going forward?

While CMA CGM notes a rebound in spot rates at the end of Q1 and trans-Pacific rates have recently ticked up, the overall environment remains weak. The article indicates shipper uncertainty and capacity imbalance continue to weigh on the industry, suggesting rates will remain under pressure despite recent modest improvements.

How does CMA CGM's workforce expansion relate to supply chain strategy?

CMA CGM ordered six LNG-powered container ships from Cochin Shipyard and plans to recruit up to 1,500 Indian crew by end of 2026. This signals investment in fleet modernization and labor localization, partly following the administration's shipping initiative announcement involving company leadership in April 2025.

Shipping & Freight

Moderate

CMA CGM Q1 Earnings Plunge 41% Amid Weak Rates

May 26, 2026

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5 billion. 8% per TEU to $1,351. 6% reflects the broader industry malaise affecting all major multinational liner operators.

This earnings report underscores a critical supply chain reality: volume growth and operational efficiency gains are insufficient buffers against macroeconomic headwinds and capacity imbalance in ocean freight. CMA CGM's resilience—notably its continued Red Sea operations—provides some competitive differentiation, but the rate environment remains stubbornly weak. 4 billion investment) and LNG-powered vessel orders signal management confidence in diversified revenue streams beyond core container shipping, yet near-term profitability remains under pressure.

For supply chain professionals, this signals continued buyer leverage in ocean freight contracts. While the article notes spot rates ticked up by quarter-end and trans-Pacific rates have recently improved, the structural oversupply of container capacity and shipper uncertainty suggest pricing recovery will be gradual. Organizations should expect freight rate negotiations to remain favorable through the first half of 2026, but should also prepare contingency plans for geopolitical disruptions—particularly Middle East instability—that could reroute volumes and increase transit times.

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this month

What if container freight rates remain depressed for 6 more months?

Simulate sustained freight rate environment 15-20% below historical Q1 2026 baseline across major trade lanes (Trans-Pacific, Europe-Asia, transoceanic) through Q3 2026. Model impact on shippers with fixed capacity commitments and spot-market exposure.

Run this scenario

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immediate

What if Middle East tensions further disrupt Red Sea operations?

Model scenario where Red Sea shipping disruptions force carriers to reroute via Cape of Good Hope, adding 10-14 days to Europe-Asia transit times. Simulate impact on inventory policies, service level targets, and lead times for Asia-sourced goods.

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strategic

What if capacity additions from new LNG vessels flood the market further?

Simulate the impact of CMA CGM's six new LNG-powered vessels (plus industry-wide capacity additions) adding 150,000+ TEU annually through 2027. Model effect on carrier utilization rates, freight rate recovery timelines, and competitive positioning.

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