CMA CGM SA CEO warns industry for turbulence in shipping industry

21 Nov 2023 CW Team

Addressing concerns at an event in Paris to celebrate the establishment of a non-profit AI research lab supported by his family-controlled company, Marseille-based shipping giant CMA CGM SA, Saade highlighted the challenge in the sector due to the influx of container ships in the coming year, potentially creating an imbalance between supply and demand.

Recent months have seen a significant downturn in the shipping sector, with major container lines such as AP Moller-Maersk A/S, Hapag-Lloyd, and CMA CGM reporting substantial declines in third-quarter earnings and outlining cost-cutting measures. Some anticipate the decline persisting through 2024.

Saade expressed expectations of modest trade growth between 2% and 3% in the next year. Despite the challenging outlook, he assured that CMA CGM is financially solid, possessing significant market share in the countries where it operates, which will help it navigate the difficulties ahead.

Acknowledging the cyclical nature of the shipping industry, Saade noted that after the exceptional results in 2021 and 2022, the industry is transitioning to more normal times, and CMA CGM is well-equipped for this phase.

While the pandemic-induced boom and subsequent slump have led to industry realignments, including the dissolution of a vessel-sharing partnership between Maersk and Mediterranean Shipping Co., Saade expressed contentment with CMA CGM's membership in the Ocean Alliance, citing satisfaction with its partnership with China's Cosco Shipping Holdings Co.

CMA CGM has utilised its pandemic windfall to invest and expand, making strategic acquisitions in ports, logistics, and air transport, including a record deal to acquire Bollore SE's logistics arm for ?5 billion ($5.4 billion).

Founded by his father, Jacques, CMA CGM remains closely held by the family. Under Rodolphe's leadership, the company has diversified into media, acquiring newspapers such as La Tribune and La Provence.

When questioned about potential interest in BFM radio and television assets owned by fellow French billionaire Patrick Drahi, Saade evaded a direct response. Drahi's telecom empire, with a substantial debt load, raises considerations in the context of such acquisitions.

Rodolphe Saade, the billionaire CEO of the world's third-largest container line, has cautioned that the shipping industry is set to face turbulence as a result of new vessels, ordered during the shipping boom of the pandemic, entering service in 2024. Addressing concerns at an event in Paris to celebrate the establishment of a non-profit AI research lab supported by his family-controlled company, Marseille-based shipping giant CMA CGM SA, Saade highlighted the challenge in the sector due to the influx of container ships in the coming year, potentially creating an imbalance between supply and demand. Recent months have seen a significant downturn in the shipping sector, with major container lines such as AP Moller-Maersk A/S, Hapag-Lloyd, and CMA CGM reporting substantial declines in third-quarter earnings and outlining cost-cutting measures. Some anticipate the decline persisting through 2024. Saade expressed expectations of modest trade growth between 2% and 3% in the next year. Despite the challenging outlook, he assured that CMA CGM is financially solid, possessing significant market share in the countries where it operates, which will help it navigate the difficulties ahead. Acknowledging the cyclical nature of the shipping industry, Saade noted that after the exceptional results in 2021 and 2022, the industry is transitioning to more normal times, and CMA CGM is well-equipped for this phase. While the pandemic-induced boom and subsequent slump have led to industry realignments, including the dissolution of a vessel-sharing partnership between Maersk and Mediterranean Shipping Co., Saade expressed contentment with CMA CGM's membership in the Ocean Alliance, citing satisfaction with its partnership with China's Cosco Shipping Holdings Co. CMA CGM has utilised its pandemic windfall to invest and expand, making strategic acquisitions in ports, logistics, and air transport, including a record deal to acquire Bollore SE's logistics arm for ?5 billion ($5.4 billion). Founded by his father, Jacques, CMA CGM remains closely held by the family. Under Rodolphe's leadership, the company has diversified into media, acquiring newspapers such as La Tribune and La Provence. When questioned about potential interest in BFM radio and television assets owned by fellow French billionaire Patrick Drahi, Saade evaded a direct response. Drahi's telecom empire, with a substantial debt load, raises considerations in the context of such acquisitions.

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..