Lower freight rates made a dent in the top and bottom lines of CMA CGM and ZIM in the fourth quarter, following the trend experienced by container shipping contemporaries Maersk and Hapag-Lloyd.
While CMA CGM saw revenue at its maritime division decline 11.9 percent to $6.3 billion in the quarter on pre-tax income of $1.5 billion, ZIM’s revenues declined 32 percent to $1.5 billion on a pre-tax profit of $458 million.
Across its wider portfolio, which includes its port terminal operations and third-party logistics provider (3PL) Ceva Logistics, CMA CGM’s revenue saw a lesser decline at 5.2 percent to $13.9 billion in the quarter. Net income for the period rounded to zero.
Both CMA CGM and ZIM believe freight rates will remain volatile throughout the year, clouding any concrete expectations of how their revenue and income shake out in 2026.
Freight rates have declined since last year, largely due to an influx of container vessels that bolstered global shipping capacity compared to demand. According to Drewry’s World Container Index (WCI), average ocean spot freight rates across all major trade lanes have declined 23 percent year over year to $1,958 per 40-foot container.
CMA CGM noted that developments in the Middle East, particularly in the Red Sea, will be key factors influencing market balance and freight rate trends going forward. The container shipping giant had been preparing for a gradual reopening of the Red Sea route through the canal, but has since eased its exposure to the waterway ahead of the U.S.-Israeli military operation in Iran.
“In 2026, in a context of heightened tensions, particularly in the Middle East, our priority is clear: protecting our teams and adapting our operations to ensure our customers continue to receive a reliable and high-quality service,” said Rodolphe Saadé, chairman and CEO of the CMA CGM Group, in a statement.
ZIM president and CEO Eli Glickman echoed the concerns container prices will play that for this year, his container shipping company anticipates “continued pressure on freight rates.”
With the Strait of Hormuz seeing limited traffic over the past week as Iran threatens to attack vessels traversing through the passage, short-term freight rates could see a brief uptick as container ships opt to drop their Persian Gulf-bound cargo elsewhere. South Asian and southeast Asian ports are already seeing more vessels stopping at their gateways as they carriers spurn the conflict-ridden area.
Despite the external factors impacting the financial figures, the ocean carriers had an opposite experience when it came to transporting volumes.
CMA CGM carried 6.25 million 20-foot equivalent units (TEUs) in the quarter, up 5.3 percent from the 5.93 million boxes moved during the year-ago period. The increase in transported containers surpassed the industry’s overall growth of 4.6 percent, according to data from Container Trades Statistics (CTS).
On the other hand, ZIM’s volumes declined 8.6 percent to roughly 898,000 TEUs, down from about 982,000 TEUs in the 2024 quarter. The largest dip came from the cross-Suez services, which saw volumes decline 36 percent to 55,000 TEUs.
Routes to Latin America saw declines of 27,000 TEUs to 115,000 TEUs from the year-ago period. The trans-Atlantic trade lane saw a 26,000-TEU decline to 112,000 containers. Both trade lanes experienced 19 percent volume declines.
The trans-Pacific route is the only one for ZIM that saw an improvement from last year’s fourth quarter, with volumes increasing 3.2 percent to 425,000 TEUs.
ZIM’s overall volume decline comes as the company’s fleet is set to integrate with Hapag-Lloyd, which struck a preliminary deal to acquire the container shipping firm for $4.2 billion. That deal remains subject to various regulatory approvals, including the approval of the Israeli government, said Glickman in a statement.
That acquisition is expected to close by late 2026. Due to the proposed deal, ZIM is not providing a guidance for the upcoming year.
ZIM has continued its operations to and from Israel despite the ongoing war in the region, with local terminals at the Ashdod and Haifa ports functioning as usual.
With insurers having increased war-risk insurance premiums imposed on all vessels calling Israeli ports, ZIM is tacking on a war-risk premium surcharge for all cargo to and from Israel, effective Thursday. Depending on the service line, the surcharge will be either $75 or $100 per TEU.
