CMA CGM Q3 Performance Under Pressure: A Comparative Analysis with COSCO SHIPPING Holdings

This analysis is based on a research report published on Xueqiu on November 13, 2025 [1], which points out that CMA CGM’s Q3 performance is significantly under pressure. Verified by AJOT’s official financial data [2], CMA Group’s Q3 revenue was USD 14.042 billion, down 11.3% year-on-year, and net profit was USD 749 million, a sharp drop of 72.6% year-on-year.

:

• High integration costs of the “Ocean Alliance” and increased short-term operational complexity
• Poor cost control, leading to continuous rise in per-TEU costs
• Average revenue per TEU decreased by 19.2%, while shipping volume only increased by 2.3% [2]
• Shipping EBITDA margin dropped from 40.1% in the same period last year to 24.9% [2]

:

• Attributable net profit was RMB 9.533 billion (approximately USD 1.33 billion) [0]
• Net profit margin was 18.37%, far higher than CMA’s 4.2% [1]
• ROE reached 11.60%, showing stronger shareholder return capacity [0]

: CMA Group CEO Rodolphe Saadé clearly stated that “the next few months may be characterized by increased industry capacity and weak market demand” [2], which reflects the common challenges faced by the global shipping industry, including geopolitical tensions, fluctuations in Sino-US trade relations, and operational challenges in the Red Sea region.

: CMA’s recent major investments in markets such as India, Saudi Arabia, Germany, and the UK [2], while beneficial to its long-term market position, have significantly increased integration costs and operational complexity in the short term, directly affecting current profit performance.

: According to market share data [3], CMA CGM ranks third globally with a 12.7% market share, while COSCO SHIPPING Holdings ranks fourth with 10.8%. In the current industry downturn cycle, COSCO SHIPPING Holdings’ stronger profitability and cost control capabilities may reshape the industry’s competitive landscape.

:

1. Cyclical Risk
   : The shipping industry has strong cyclical characteristics and is currently in a downturn cycle, with freight rates continuing to be under pressure. Historical patterns show that shipping cycles usually last for several years
2. Geopolitical Risk
   : The situation in the Red Sea region remains tense, and uncertainties in Sino-US trade relations increase, affecting global trade flows
3. Overcapacity Risk
   : New ship deliveries continue to increase while demand growth slows, which may lead to further declines in freight rates
4. Alliance Integration Risk
   : The Ocean Alliance integration process is complex and may continue to generate additional costs in the short term

:

• The industry downturn cycle may accelerate market consolidation, providing acquisition opportunities for capital-abundant enterprises
• Enterprises with strong profitability such as COSCO SHIPPING Holdings are expected to gain a larger market share when the industry recovers
• Stricter environmental regulations may accelerate the phase-out of old ships and improve long-term supply-demand balance

CMA CGM’s Q3 performance pressure reflects the systemic challenges faced by the global shipping industry. High integration costs of the Ocean Alliance and poor cost control have led the company’s EBIT margin to drop to 4.2%, far lower than COSCO SHIPPING Holdings’ 18.37% net profit margin [0][1]. The current 1.16x P/B valuation does not match the weak ROE, highlighting COSCO SHIPPING Holdings’ comparative advantages in cost control and profitability.

Industry data shows that CMA’s average revenue per TEU decreased by 19.2% while shipping volume only increased by 2.3% [2]. This mismatch between revenue and volume reflects the severe challenges of the freight rate downturn cycle. In the current environment of geopolitical tensions, overcapacity, and weak demand, the cost control capabilities and strategic execution of shipping companies will become key factors determining long-term competitiveness.