French shipping giant CMA CGM says ongoing instability in the Middle East is continuing to reshape global trade patterns, even as the company delivered relatively steady first-quarter results amid a difficult market environment.

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The world’s third-largest container carrier reported first-quarter revenue of $13.2 billion, largely unchanged from a year earlier. However, profitability came under pressure as weaker freight markets and higher operating expenses weighed on earnings.

EBITDA for the quarter dropped more than 30% to $2.1 billion, reflecting the combined impact of softer container rates, elevated fuel costs, and continued supply chain disruptions.

Chairman and CEO Rodolphe Saadé said the company had managed to remain resilient despite growing geopolitical uncertainty and prolonged disruption across key shipping corridors.

A major challenge remains the ongoing crisis surrounding the Strait of Hormuz, which has forced carriers to rethink routing strategies and redesign logistics operations serving Gulf markets.

CMA CGM said it has been using alternative multimodal transport solutions to maintain cargo flows into the region as shipping restrictions and security concerns continue to disrupt vessel movements.

Industry analysts increasingly view the Hormuz situation as a long-term structural challenge rather than a temporary disruption. Carriers across the sector have spent months adjusting schedules, rerouting cargo, and managing higher insurance and operational costs linked to instability in the Gulf.

Despite the difficult environment, CMA CGM’s shipping volumes still rose 1.5% year-over-year to 5.9 million TEUs.

Revenue from its maritime division, however, fell 8.5% to $8 billion as average revenue per container declined nearly 10% compared to the same period last year. Earnings from the shipping segment also dropped sharply from year-ago levels.

At the same time, the company continued to aggressively expand its logistics and infrastructure businesses.

During the quarter, CMA CGM rolled out its new “DAY 10” OCEAN Alliance network, covering 41 services across major East-West trade lanes with combined capacity exceeding 5 million TEUs. The carrier also introduced additional routes connecting Asia, Europe, the Caribbean, and the U.S. West Coast.

India also remained a major focus for expansion. The group placed orders for six LNG-powered container ships at Cochin Shipyard and launched a new AI and digital research partnership with Capgemini.

CMA CGM also finalized several acquisitions through its logistics arm, including UK rail operator Freightliner and Italian heavy-lift specialist Fagioli.

The company’s diversification strategy provided an important buffer against weakness in container shipping. Revenue from terminals, air cargo, and other non-shipping businesses jumped sharply during the quarter, with port operations and aviation helping offset softer ocean freight earnings.

Looking ahead, CMA CGM said it remains cautious about the rest of 2026, warning that continued Middle East instability, rising oil prices, and shifting trade policies could keep pressure on global shipping markets in the months ahead.