CMA CGM: US port charges would have major impact on shipping lines

CMA CGM warned that US port charges for Chinese vessels will have a major impact on the entire shipping industry, stressing its readiness to adapt to global economic and geopolitical fluctuations.

cma-cgm container vessel CMA CGM container ship (Source: CMA CGM)

According to CMA CGM, there will be an inevitable impact if the Trump administration moves forward with imposing charges on Chinese-built and operated vessels calling at US ports.

"China builds more than half of all container ships in the world, so this would have a significant effect on all shipping firms," Chief Financial Officer Ramon Fernandez said Monday morning.

Major shipping lines such as CMA CGM, Maersk, Mediterranean Shipping Company (MSC) and China's Cosco Shipping could face fees of up to $1.5 million per port call if the plan goes through.

CMA CGM's own fleet would also be affected. According to Xeneta, 41% of its active fleet is built in China, while 53% of its new ship orders are from the country.

Currently, CMA CGM's US subsidiary, American President Lines (APL), owns 10 US-flagged vessels, according to Fernandez.

The USTR's proposal comes after determining that China's dominance in maritime, logistics and shipbuilding is "unreasonable" and detrimental to the US economy. Since Trump’s first term, the US has imposed a series of import tariffs in response to China’s trade violations under Section 301.

When asked about the future of the Ocean Alliance – which includes CMA CGM, Cosco, Orient Overseas Container Line and Evergreen (Taiwan, China), Mr. Fernandez affirmed that there is currently no sign that the alliance is affected by US policy.

The alliance’s “Day 9” service will officially launch in April 2025, with about 390 container vessels in operation, a total nominal capacity of nearly 5 million TEUs on 41 weekly service routes and more than 520 direct port pairs.

In the fourth quarter, CMA CGM recorded a 38.8% increase in revenue to $14.7 billion and a net profit of $1.5 billion. Revenue grew faster than volume, thanks to freight rates remaining high compared to the same period last year, with total volume reaching 5.93 million TEU, up 7.8%.

Fernandez said that customers increasing imports to avoid tariffs had contributed to the strong volume in recent times.

CMA CGM did not provide an official forecast for 2025, affirming that it remains "prudent" in the face of economic and geopolitical fluctuations.

Despite being just a few years after the global supply chain was plunged into crisis due to COVID-19 in 2021, Chairman and CEO Rodolphe Saadé said the current market is experiencing an "unprecedented uncertainty".

The company forecasts global economic growth of around 3% this year, with global trade also growing at a similar rate.

CMA CGM warned that higher tariffs could impact trade and “ead to a reorganization of global supply chains in the medium term.”

In addition, the delivery of new vessels and developments in the Red Sea will also be key market drivers. Both scenarios have a direct impact on global shipping capacity. If shipping lines resume regular operations in the Red Sea, vessel supply could increase as they no longer have to sail around the Cape of Good Hope in South Africa.

According to data from Alphaliner, 59% of new container ship capacity in the past year has been allocated to the Asia-Europe trade, contributing to a sharp increase in freight rates several times over 2024.

Fernandez added that many companies may scrap older vessels if the overcapacity persists after the Red Sea route stabilizes. CMA CGM has conducted a number of transits through the Suez Canal on a case-by-case basis since the Houthis began their offensive in the Red Sea in late 2023, with the French Navy escorting them.

Amidst the uncertainty, CMA CGM said it continues to closely monitor economic and geopolitical developments, "while remaining confident in its ability to weather the cycle thanks to its business diversification and financial strength.”

Moving into 2025, CMA CGM is still aiming to expand its environmentally friendly fleet. To reach its carbon neutrality goal by 2050, the group has invested nearly $20 billion in LNG and methanol-powered vessels, with the group expecting to have 153 clean energy vessels in its fleet by 2029.

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