CMA CGM, the world’s third-largest container line, posted record profits for a sixth consecutive quarter but warned of an “already perceptible” decline in consumer spending that would lead to a shipping downturn as early as this year’s second half. The French container line has reported $34 billion in profits since the pandemic began and said intense pressure on global supply chains and acute geopolitical stability continued in the second quarter of 2022. Profits gained 118% to $7.6bn on revenues of $19.48bn for the three-month period ending June 30, even as volumes carried dipped slightly year-on-year. Revenues were up 57% compared with 2021’s second quarter, with the shipping division accounting for four-fifths of money earned. Record-breaking profits came even as fuel costs were $1bn higher for the container line’s fleet of more than 550 vessels over the first six months, the company reported.

Container lines are generating the highest profits since containerization began more than 50 years ago on the back of continued global logistics logjams and supply chain interruptions that began with mass lockdowns across the world to deal with the global pandemic. CMA CGM chairman and chief executive Rodolphe Saadé said the company was accelerating supply chain investments beyond shipping, completing purchases of two logistics companies, and finalizing air freight contracts with Air France-KLM, of which it is now the biggest shareholder.

As freight rates collapse on the key transpacific route to the US West Coast from China ahead of the peak season, the company noted that inflationary pressures and geopolitical tensions had clouded the outlook for the traditional peak season, now underway. “The sharp increase in energy costs, combined with rising commodity prices, is weighing on consumer spending and could have a negative impact on the economic situation and the outlook for growth in world trade,” the company said. “In recent weeks, inflationary pressures have caused a slowdown in consumer spending and therefore a softening in demand for maritime shipping. In some regions, these developments have led to a decline in spot freight rates.”

Widespread port congestion reduced the quality of service that CMA CGM provided, and limited volumes carried, while pushing up operating costs by 22% including a 75% rise in bunkering costs. The company shipped 5.62m TEUs in the second quarter, lower than the 5.69m seen over the year-ago period, which the group attributed to global supply chain pressure and port congestion.

Some 90% of consolidated profits were being reinvested the company said.  A fleet of 12 aircraft begins operating by 2026 and 44 new vessels with dual fueled engines to run on liquefied natural gas are currently on order. CMA CGM also highlighted recent investments in satellite and space-based connectivity to support maritime and logistics and had acquired a stake in Eutelstat Group.