French shipping giant CMA CGM SA, owned by billionaire Rodolphe Saade and his family, said weak demand for freight and a gloomy economic outlook hurt the company’s earnings during the current quarter.
The world’s third-largest container line is getting more pessimistic than the company warned about 3 months ago when the family firm indicated the start of a recession. The warning is in line with revelations made by European competitors, including AP Moller-Maersk A/S and Hapag-Lloyd AG, in recent weeks.
CMA CGM said in a statement profits Friday: “The group expects the continuation of the rise in energy costs, which directly affects operating costs, and consumption in general, especially in Europe. This inflationary context coincides with monetary tightening policies that increase uncertainty about economic growth prospects . “
The company has indicated an expectation of a decrease Shipping Rates to “more normal levels”, and thus the decline in profit margins in the last three months of the year.
