French shipping giant CMA CGM SA, owned by billionaire Rodolphe Saade and his family, said that weak demand for freight transportation and gloomy economic prospects hurt the company’s earnings during the current quarter.
The world’s third largest container line is getting more pessimistic than the company warned regarding 3 months ago when the family business indicated the onset of a downturn. 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 On Friday: “The group expects the continuation of the rise in energy costs, which directly affects operating expenses, and in general on consumer spending, especially in Europe. This inflationary environment coincides with monetary tightening policies that increase the uncertainty of economic growth prospects.”
The company indicated an expectation of a decline Shipping rates to “more normal levels”, and thus the decline in profit margins during the last three months of the year.
