Global Shipping Giant CMA CGM Is Seeing Big Jump In Cargo Demand From China
CMA CGM, one of the biggest names in global shipping, is suddenly seeing a strong uptick in cargo leaving China. The reason? A recent 90-day tariff break between China and the US has triggered a sharp rebound in demand for freight services. Businesses on both sides are scrambling to move goods before the temporary relief ends — and CMA CGM is right in the middle of that surge.
According to the company, the rebound started almost immediately after the tariff pause was announced. It’s a welcome change for the shipping giant, which had earlier seen a major slowdown in trade during the height of the US–China tariff tensions.
Shippers Rushing to Beat the Clock
After months of high tariffs slowing trade, many companies now seem to be making up for lost time. CMA CGM says the demand for cargo space has jumped back up to pre-tariff levels — and possibly beyond.
It’s not just about catching up. With only a 90-day window, many exporters and importers are in a hurry to move their goods while the cost is lower. No one knows what might happen after the tariff break ends, so for now, companies are moving fast.
Spot Rates Bounce Back — Along with Industry Optimism
The transpacific trade route — which connects Asia to the US — had taken a big hit earlier due to weak demand. That drop also dragged down container rates across the board. But since the tariff truce was announced, rates are rising again, and the mood in the industry is much more upbeat.
Other major players in the shipping world, including Maersk and Hapag-Lloyd, are also reporting higher activity. Their stocks are seeing some of the strongest gains this year, which reflects renewed investor confidence in global trade.
CMA CGM Posts Solid Profits Despite Global Headwinds
Even with all the uncertainty in global trade, CMA CGM posted strong first-quarter results. The company made $1.12 billion in profit — a solid jump from $785 million the same time last year. Shipping volumes rose by over 4%, and sales were up more than 11%.
That’s a strong showing for a company that had to navigate a volatile global trade environment. It’s also a sign that shipping, while often at the mercy of political decisions, can still be profitable with the right strategy.
Trouble in the Red Sea Keeps Shippers on Alert
While things are looking better on the US–China front, CMA CGM is still dealing with other challenges. Attacks by Houthi Army in the Red Sea have forced the company — and many others — to change course. Instead of using the Suez Canal, some ships are now rerouting around Africa, adding extra time and cost.
CMA CGM has only been sending ships through the Red Sea under military protection, with either French or Italian escorts. The situation remains tense, and for now, there’s no clear end in sight.
How Is the Company Responding to US Pressure on China-Built Ships?
The US recently floated the idea of adding extra fees on Chinese-built ships that transport traded goods. That might sound worrying, but CMA CGM isn’t too concerned. Less than half of its ships were built in China, and the company says it can easily rotate other vessels into service to meet US port requirements.
In short, it’s not a major disruption. They’re prepared to adapt if needed.
Balancing Investments in the US and Partnerships with China
Interestingly, CMA CGM is also heavily investing in the US. Earlier this year, the company announced a $20 billion investment plan spread over four years. That includes creating around 10,000 jobs in logistics and shipping. The announcement was made alongside former President Donald Trump at the White House.
At the same time, CMA CGM is staying close to its Asian partners. It continues to work with major shipping companies like Cosco (China), Evergreen (Taiwan), and OOCL (Hong Kong) as part of the OCEAN Alliance — a capacity-sharing agreement now extended until 2032.
Despite this, CMA CGM says the US government hasn’t raised any concerns about its long-term partnerships with Chinese-linked carriers.
Final Thoughts
The Saadé family, which owns CMA CGM, has built one of the world’s most powerful shipping empires. Even in a time of geopolitical tension and trade uncertainty, the company has managed to stay agile, profitable, and well-positioned.
With China–US trade heating up again — at least for now — and strong strategic investments in both East and West, CMA CGM looks set to sail through the current storm, eyes firmly on the horizon.
Adapted for www.shiportrade.com
News originally published by gCaptain.
