PARIS (Reuters) – CMA CGM mentioned on Friday that geopolitical and financial dangers have been clouding its outlook regardless of one other surge in earnings as a result of a saturated delivery market.

French-based CMA CGM, one of many world’s largest container strains, reported a internet revenue of $7.2 billion for the primary quarter, up from $2.1 billion within the year-earlier interval and likewise surpassing $6.7 billion posted for the final quarter of 2021.

An financial rebound following the preliminary impression of the COVID-19 pandemic despatched freight charges hovering and left delivery capability stretched.

At CMA CGM’s predominant ocean delivery enterprise, robust revenues per container once more offset rising prices, together with a close to 46% year-on-year enhance in vessel gas bills.

“Even when the Group stays assured about its monetary efficiency prospects for 2022, the present setting and its medium and long-term penalties stay unsure,” CMA CGM mentioned in an announcement.

Container volumes shipped by the group fell 2.8% 12 months on 12 months within the first quarter as a result of bottlenecks at ports and on land routes, it mentioned.

Different container strains together with Maersk have recommended the market could normalise through the second half of the 12 months.

CMA CGM like different delivery corporations has suspended providers in Ukraine and Russia as a result of Moscow’s invasion of its neighbour and associated sanctions imposed by the West on Russia.

CMA CGM, privately managed by the Saade household, had restricted exercise in Ukraine and Russia, however has warned the battle might have international financial repercussions.

Like its delivery friends, hovering earnings have allowed CMA CGM to extend investments in non-maritime logistics.

The group final month introduced an air cargo partnership with Air France-KLM underneath which CMA CGM will develop into a core shareholder within the airline.

The Marseille-based group additionally introduced a brand new order for 16 vessels, of which 10 to be powered by liquefied and 6 by methanol, taking its variety of ships on order to 69.