CMA CGM reported a strong revenue of close to $20bn for the third quarter of 2022, up 30% from the same period of last year. The strong result was mostly driven by the group’s maritime shipping business which amounted to $15.7bn, up 25.8% year-on-year, but down 2% compared to the previous quarter.

The French company logged a net profit of $7bn up from $5.6bn in the year-earlier period. Net debt was reduced by $5.3bn. CMA CGM said the third quarter of 2022 was hit by geopolitical tensions, which spurred higher inflation and dragged down consumer spending. The slowdown in shipping demand pushed down spot freight rates, particularly on the main East-West routes. It added the unstable geopolitical situation has led to a rise in energy price which saw its spending on bunkers increase by $822m in the third quarter.

“The CMA CGM Group once again recorded strong results in the third quarter,” said chief executive Rodolphe Saade. “Over the past two years, we have significantly strengthened our financial structure and developed our business through the entire supply chain. In this new environment, we will continue to invest to strengthen our positioning in maritime shipping and logistics, accelerate our energy transition and provide our clients with even more efficient solutions,” he added.

CMA CGM said the outlook for the global economy is uncertain due to geopolitical tensions.

The company expects energy costs to remain high and rising inflation to slow down consumer spending, leading a return to a more normal trade flows and an increasing decline in freight rates.

CMA CGM, which is committed to achieving net zero carbon by 2050, recently launched a $1.5bn green transition fund that will help it to accelerate its energy transition and support the development and industrial-scale production of renewable energy.