Suez Canal Reverse Sends Signal of Red Sea Stability Confidence
CMA CGM announced their plan to resume full-capacity operations through the Suez Canal by December 2025 following successful trial transits earlier in November. This decision by the Suez Canal Authority marks a significant shift in global routing strategy as major carriers reevaluate Red Sea corridor after months of diversions around Cape of Good Hope.
CMA CGM's return to the canal demonstrates their increasing confidence in enhanced security conditions and operational stability across the region. CMA CGM follows Maersk Group by signing strategic partnership agreements with Suez Canal Authority that will allow both carriers to capitalize on efficiency gains and cost savings offered by this traditional Asia-Europe route. Their return is anticipated to reshape global shipping networks as well as restore orderly trade flows disrupted by geopolitical volatility.
Q3 Results Show Volume Growth Amid Pricing Pressure
CMA CGM transported 6.17 million TEU in the third quarter of 2025, representing a year-on-year and sequential increase of 2.3 percent and 3.4 percent respectively despite an unpredictable operating environment. CMA CGM's financial performance reflected these difficulties with shipping revenue falling 17.4% year-over-year to $8.96 billion while EBITDA decreased 48.8% year-on-year to $2.23 billion respectively.
Average revenue per TEU declined 19.2 percent year-on-year to $1,452, reflecting declining demand on key east-west lanes as well as expanding capacity additions globally. Group results revealed revenue to drop 11.3 percent year-on-year to $14.04 billion while EBITDA decreased 40.5 percent year-on-year to $2.96 billion and net income dropped to $749 million despite significant headwinds caused by near-standstill flows between China and the United States during Q2. Despite these challenges, management pointed to quarter-on-quarter improvement after an otherwise challenging Q2, where near standstill flows between China and America limited results in increased investment to boost growth during Q3.
Chairman and CEO Rodolphe Saadé stated: In a global environment that remains highly uncertain, our Group continues to demonstrate resilience and discipline. The months ahead will likely be marked by increasing capacity and softer demand. CMA CGM will continue to adapt, guided by our long-term vision and our constant commitment to serving our customers.
Strategic Repositioning and Terminal Expansion
CMA CGM has made strides to reposition assets and expand terminal stakes at strategic nodes to increase schedule reliability and inland reach. They recently ordered six 1,700-TEU LNG newbuilds with deliveries beginning as soon as 2029 to signal their long-term commitment to India market alongside an aggressive recruitment plan for seafarers.
CMA CGM's Red Sea memorandum of understanding with Red Sea Gateway Terminal (RSGT) to build and operate Terminal 4 in Jeddah aims at 2.6 million TEU capacity and brings its total capacity up to 8.8 million TEU - this investment ensures connectivity throughout Red Sea trade flows while positioning CMA CGM to take advantage of future trade flows through this strategic chokepoint.
CMA CGM acquired a 20 percent stake in Eurogate CTH, expanding capacity from 4 million TEU to 6 million through modernization and expansion in Hamburg. Furthermore, in the UK they acquired Freightliner UK Intermodal to strengthen rail-based modal shift capabilities during coastal or port disruptions and maintain schedule integrity during coastal or port disruptions. Furthermore, beginning 2026 10 24,000-TEU LNG megamax ships will join France under their flag as part of decarbonization-through-scale strategy and home market anchoring strategies.
Service Adjustments Reflect Market Dynamism
CMA CGM and Marfret announced on November 12, 2025 they have altered the port rotation for their RTWPAN/NASP service linking Europe with Oceania effective November 12th 2025 by dropping the call at Zeebrugge and changing it accordingly: Philadelphia-Rotterdam-Dunkirk-Le Havre-New York-Savannah-Kingston-Papeete-Noumea-Brisbane-Sydney-Melbourne-Tauranga-Cartagena-Savannah-Philadelphia
CMA CGM enhanced their MEDCARIB service connecting the Mediterranean with South America's West Coast beginning December 2025 to accommodate seasonal cherry season demand dynamics. Furthermore, they continued operating in Mali despite declining security conditions and fuel shortages following meetings with Malian authorities early November.
Forecast of Capacity Growth and Affordable Pricing Solutions Ahead
Management's near-term strategy remains cautious but proactive, emphasizing strict cost control, rotation optimization and service reliability preservation while redeploying tonnage to more resilient corridors. CMA CGM's LNG newbuild pipeline and sustainability credentials such as Green Marine Europe labelling and EcoVadis 80/100 rating strengthen its medium-term positioning with cargo owners facing Scope 3 emissions pressures.
Industry analysts anticipate ample capacity and competitive pricing through 2026, with winners being carriers capable of efficiently sweating assets while investing for long-term growth. CMA CGM stands out in this respect thanks to their terminal stakes, rail integration capabilities and network agility; all three enable the carrier to maintain schedule integrity despite an expanding global fleet capacity amid lower cargo demand.