France-based shipping container company, CMA CGM reported its Q1 2022 earnings with a net profit of $7.2bn, up 3.4x YoY, and also higher than its prior quarter’s $6.7bn profit. High freight rates in the aftermath of the economic rebound post Covid helped boost profits, whilst also ‘stretching shipping capacity’. CMA CGM’s major ocean shipping business witnessed strong revenues per container that helped offset rising costs that included a 46% YoY increase in vessel fuel expenses. Container volumes shipped fell 2.8% YoY mainly due to ‘bottlenecks at ports and on land routes’. Thanks to its improved earnings, the company said it will increase investments in non-maritime logistics, akin to its peers. Regarding this, CMA CGM has already taken steps – in May the company had announced an air cargo partnership with Air France-KLM where the shipping company will become a core shareholder in the airline.
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