Brief analysis of Q3 2024 performance of major shipping and logistics companies

Major global container shipping companies have successively announced their financial reports for the third quarter of 2024 and some raised their expectations toward the full year of 2024 after achieving a remarkable performance in the first three quarters.

CMA CGM

In the third quarter, CMA CGM achieved operating income of US$15.8 billion, a year-on-year increase of 38.5%; earnings before interest, tax, depreciation and amortization (EBITDA) was approximately US$5 billion, a year-on-year rise of 149%; and net profit was US$2.7 billion, up 604% year on year.

In terms of business segments, CMA CGM's shipping business achieved operating income of approximately US$10.9 billion in the third quarter, a year-on-year increase of 43.4%; EBITDA was US$4.4 billion, up 179% on the year. In addition, freight volume was 6.04 million TEU, a year-on-year increase of 5.5%. The average freight rate was US$1798/TEU.

This growth was mainly due to active global trade and strong demand. At the same time, shipping capacity was still limited due to some ships circling the Cape of Good Hope and factors expected in advance in the global uncertain environment. Strong demand not only amplified the usual peak season effect, but also made the peak season start earlier than in previous years.

Kuehne+Nagel

In the first three quarters of 2024, Kuehne+Nagel achieved a net turnover of 18 billion Swiss francs, a profit before interest and tax of 1.2 billion Swiss francs, and a net profit of 915 million Swiss francs. The conversion rate of EBITDA to the group's gross profit was 19%. Results for the first three quarters of 2024 were affected by a negative exchange rate impact of 2% and a one-time restructuring cost of 17 million Swiss francs in the second quarter of 2024.

As of September 2024, the net turnover of the Kuehne+Nagel shipping logistics business unit reached CHF 6.7 billion, profit before interest and tax (EBIT) was CHF 653 million, and the transportation volume reached 3.2 million TEUs. The conversion rate remained at a high level of 42%, and 37 new network locations have been opened. Aggressive portfolio management contributed to a 2% increase in similar business volume in the third quarter of 2024.

C.H.ROBINSON

Recently, C.H. ROBINSON, a world-renowned freight forwarding company, announced its third-quarter results.

C.H.ROBINSON's total revenue in the third quarter was approximately US$4.64 billion, a year-on-year increase of 7%; adjusted gross profit was approximately US$740 million, a year-on-year increase of 15.8%. In addition, total revenue in the first three quarters was near US$13.54 billion, up 1.2% on the year; adjusted gross profit was around US$2.08 billion, up 4.8% year on year.

Among them, C.H.ROBINSON's global freight forwarding business segment's total revenue in the third quarter was approximately US$1.14 billion, a year-on-year increase of 58.7%; adjusted gross profit was US$230 million, up 38.1% compared with the same period of last year. In the first three quarters, the sector's total revenue was around US$2.92 billion, a year-on-year increase of 27.6%; adjusted gross profit was US$600 million, a year-on-year rise of 13.6%. Dave Bozeman, President and CEO, said C.H.ROBINSON is expected to achieve compound growth of more than 30% in the two years from the end of 2022 to the end of 2024.

ONE

Data showed that ONE achieved revenue of US$5.864 billion in the second quarter of fiscal 2024, a year-on-year increase of 65%; Earnings before interest, tax, depreciation and amortization (EBITDA) was US$2.386 billion, a year-on-year increase of 447%; Earnings before interest and tax (EBIT) was US$1.865 billion, a year-on-year increase of 5916%; Net profit was US$1.999 billion, hiking by 969% on annual basis.

ONE also raised its full-year forecast for fiscal year 2024, raising its net income guidance to $3.095 billion from the $2.745 billion announced on July 31.

Maersk

Maersk's latest results reflected significant increases in shipping freight rates, improved volumes in various business segments and increased revenue per operation at the terminal, resulting in revenue reaching US$15.8 billion (US$12.1 billion last year). EBITDA was US$4.8 billion (last year: US$1.9 billion) and EBIT was US$3.3 billion (last year: US$538 million), both significantly higher than last year, driven mainly by the maritime transport sector, while logistics and services sectors and terminals also contributed through growth in EBITDA and EBIT. Revenue from each business segment increased by US$3 billion month-on-month, EBITDA and EBIT increased by US$2.7 billion and US$2.3 billion respectively. EBITDA margin was 30.4%, and EBIT margin was 21.0%.

Shipping's profitability was driven by a 54% increase in freight rates and a 0.3% positive cargo volume growth, which ultimately achieved a 41% increase in revenue. Rerouting around the Cape of Good Hope remained an important factor, affecting fuel consumption and operating costs. Despite these cost pressures, EBITDA and EBIT increased by $2.9 billion each, and EBIT margins reached 25.5%.

As announced on October 21, 2024, based on strong third-quarter results, stable container market demand and continued development of the situation in the Red Sea/Gulf of Aden, Maersk has increased its full-year financial forecast for 2024, as shown in the table below. Maersk now expects the global container market to grow by about 6% for the full year (previously expected to be 4-6%). Capital expenditure guidance remains unchanged.

Cosco Shipping Holdings

In the first three quarters, Cosco Shipping Holdings achieved significant growth in its main business. Among them, the container business completed 19.0397 million TEUs of bills of lading, a year-on-year increase of 9.07%, and realized revenue of RMB 168.840 billion, a year-on-year increase of 30.57%; the terminal business completed a total throughput of 107.2673 million TEUs, up 7.08% on the year, and realized revenue of RMB 7.944 billion, a year-on-year rise of 6.49%. The construction of digital supply chains created new growth drivers. The supply chain revenue of the container shipping business excluding shipping was RMB 30.711 billion, up 19.66% on annual basis. It was worth mentioning that Cosco Shipping Holdings relied on its leading digital intelligence technology and an improving full-link service network to actively promote strategic integration with leading customers in emerging industries, including photovoltaics, lithium batteries, automobiles, and cross-border e-commerce boxes. The volume increased by 31%, 20%, 17% and 60% year-on-year.

Yangming Marine

In the third quarter of 2024, Yangming Marine achieved a cumulative operating income of NT $72.84 billion (approximately US$2.27 billion), a year-on-year increase of 102.9% and a month-on-month increase of 38.5%.

In the first three quarters of 2024, Yangming Marine achieved a cumulative operating income of NT$169.23 billion (approximately US$5.28 billion), a year-on-year increase of 56.8%. Net profit after tax and earnings per share for the first three quarters were NT$51.86 billion (US$1.62 billion) and NT$14.79 respectively.

Wanhai Lines

In the third quarter of 2024, Wanhai Lines achieved a cumulative operating income of NT$54.48 billion (approximately US$1.70 billion), a year-on-year increase of 117.5% and a month-on-month increase of 42.7%.

In the first three quarters of 2024, Wanhai Shipping achieved a cumulative operating income of NT $120.26 billion (approximately US$3.75 billion), a year-on-year increase of 60.2%. Net profit after tax and earnings per share for the first three quarters were NT$34.63 billion (US$1.08 billion) and NT$12.34 respectively.

Evergreen Shipping

In the third quarter of 2024, Evergreen Shipping achieved a cumulative operating income of NT$152.79 billion (approximately US$4.77 billion), a year-on-year increase of 109.8% and a quarter-on-quarter increase of 43.8%.

In the first three quarters of 2024, Evergreen Shipping achieved a cumulative operating income of NT$347.76 billion (approximately US$10.85 billion), a year-on-year rise of 68.0%; operating profit reached NT$125.49 billion (US$3.92 billion), a year-on-year surge of 117.7%; operating profit margin reached 36.1%; net profit after tax and earnings per share for the first three quarters were NT$112.08 billion (US$3.50 billion) and NT$50.68 respectively.

HMM

In the third quarter of 2024, HMM achieved operating income of 3.5 trillion won (approximately US$2.49 billion), a quarter-on-quarter increase of 33.4% and a year-on-year increase of 67.0%%; operating profit increased to 1.5 trillion won (approximately US$1.02 billion), a quarter-on-quarter increase of 126.9% and a year-on-year increase of 1822.4%. In the third quarter, HMM's net profit reached 1.7 trillion won (approximately US$1.22 billion), a quarter-on-quarter rise of 163.1% and a year-on-year increase of 1,730.5%, far exceeding analysts' previous expectations.

In the first three quarters of 2024, HMM achieved operating income of 8.5 trillion won (approximately US$5.98 billion), a year-on-year increase of 34.8%%; operating profit increased to 2.5 trillion won (around US$1.76 billion), a year-on-year surge of 363.7%. In the first three quarters, HMM's net profit reached 2.9 trillion won (near US$2.02 billion), up 308.5% on annual basis.

Matson

Matson, the leading U.S. shipping company in the Pacific, reported net income of $199.1 million for the first three quarters and a single-quarter net income of $119.9 million for the third quarter.

After experiencing extremely volatile 2024, the global shipping and logistics industry will continue to face the test of multiple uncertainties in 2025. Unstability in macroeconomic trends, changes in policy supervision and the complexity of the geopolitical situation may continue to affect the operational efficiency and liquidity of the industry.