CMA CGM - comment

Management comments on the 22Q3 results showed the emerging strains for container rates. There is no reason for panic yet, but 2023 will be a tough year for the industry. In Q3, despite a sequential rise in volumes, shipping revenue fell nearly 2% as lower spot box rates began to bite. The 2021 high point for the SCFI was above USD5K, but spot rates today are down >70% at USD1.4k. For CMA CGM Q3 revenue per TEU was USD2.8k, but as bulk buyers renew their annual contracts, this price contraction will begin to bite. On its half-year call, CMA CGM was downbeat about Q4, and the 2023 outlook. The halcyon days for the industry are coming to an end. CMA has acquired some very saleable port and logistics assets and should be in a stronger position than in previous downturns. There is a call this afternoon and we will provide an update after that.