Inventory Stockpiling Drives 19% Revenue Surge at CMA CGM

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Inventory Stockpiling Drives 19% Revenue Surge at CMA CGM

Strong volumes and higher freight rates powered CMA CGM to nearly 20 percent revenue growth in the second quarter as businesses pulled forward orders to stock up on inventory and get ahead of additional fuel adjustments and surcharges.

Total revenue at the ocean carrier amounted to $15.7 billion, up 19.2 percent compared with the second quarter. Net income increased by roughly 48 percent, jumping to an estimated $770 million.

But revenue at the company’s container shipping segment soared 22 percent to a shade under $10 billion, mainly reflecting an average revenue of $1,575 per 20-foot equivalent unit (TEU) transported. On an annual basis, the average freight rate per TEU escalated 15.1 percent year-on-year.

Additionally, EBITDA margins at the segment benefited from the high-rate environment, increasing to 22.7 percent in the second quarter versus 19.4 percent in the year-ago period.

“Uncertainties about whether supply chains will continue to work well against the backdrop of a conflict have pushed people to stock up preventively, and that’s what we saw in the second quarter,” chief financial officer Ramon Fernandez said last Tuesday in an earnings call. “Those effects will probably continue in the third quarter.”

In the second quarter of 2026, transported volumes reached 6.3 million 20-foot equivalent units (TEUs), up 6 percent compared with the 2025 period.

The numbers surpass global container volume growth seen in April and May, in which Container Trades Statistics counted a 4.6 percent increase.

Also aiding the container shipping giant was a significant bump in traffic on the trans-Pacific trade lane in the three-month period, as more U.S. importers re-upped their buying habits from China.

“Over the past months there has been a rebound of Chinese exports to the U.S. compared to what was seen over the previous year,” said Fernandez. “This window of opportunity of sorts has led companies to reconstitute their stocks.”

China’s exports to the U.S. rose 13.8 percent from last June to $43.5 billion, following up a 35.4 acceleration in May to roughly $35 billion, the highest such annual growth since March 2021. Shipments bounced back from a low baseline in 2025, after the tariff dispute between the countries had intensified, briefly sinking volumes on the trans-Pacific eastbound route.

Fernandez said the environment was “very volatile and very complex,” noting that an increase in inflation could hit consumer demand that could possibly end the stockpiling efforts.

According to the U.S. Census Bureau, American retailers’ inventory-to-sales ratio in May was the lowest since January 2023 at 1.25, reflecting the need for companies to continue replenishing goods. The pulling forward of inventory effectively created an earlier than usual peak shipping season, which traditionally is categorized as August to October.

Concerns about a newer batch of U.S.-levied tariffs along with the Iran-war driven increase in fuel costs further led to the increased movement in the April-through-June period.

Last week, CMA CGM announced an ⁠emergency ​fuel surcharge effective Aug. 1 following a ​renewed escalation of hostilities in the Strait of Hormuz in late July in which multiple oil tankers were attacked by Iranian forces.

The ⁠surcharge ranges from $65 to $165 per container depending on size, and ​will be in place ​until ⁠further notice.

During the call, Fernandez indicated that CMA CGM still has eight of its vessels still trapped in the Persian Gulf due to the concerns over safety in the strait.

“Against a backdrop of continued geopolitical instability, the Group delivered solid results in the second quarter of 2026, driven by the performance of our shipping activities, the growth of our terminals and air cargo businesses, and the complementary strengths of our logistics operations,” said Rodolphe Saadé, chairman and CEO of CMA CGM Group, in a statement. “This performance reflects our strategy of expanding in key markets and investing in strategic assets. They once again demonstrate the strength of our model, our agility and our resilience, all in support of delivering reliable, high-quality service to our customers.”

During the quarter, the container shipping giant further sought to expand its logistics footprint with the $1.4 billion acquisition of FedEx’s contract logistics business, giving the French company a greater stronghold in the U.S.

On Monday, the ocean carrier withdrew a bid to buy a 49 percent stake in Rail Logistics Europe, which operates France’s largest railway. CMA CGM had acquired the intermodal operations of U.K.-based railroad Freightliner late last year.

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