CMA CGM, the world's third-largest container carrier, is cautioning against a potential price war in the global shipping industry as the delivery of new vessels threatens to extend a protracted slump. The French company, controlled by billionaire Rodolphe Saade, reported a significant drop in third-quarter net income, citing the expected increase in global shipping capacity in 2024 and the continued impact of the global economic slowdown. The industry, which experienced a boom during the pandemic, is now grappling with challenges such as wars, inflation, and high borrowing costs. CMA CGM, along with industry rivals, is taking measures to cut costs, and there is a call for responsible practices to maintain market stability. The company's CFO emphasized the risk of imbalance due to weak demand and high supply, potentially leading to falling rates. The industry's reversal of fortunes since the second half of 2022 has prompted job cuts and a focus on cost reduction. While there is no explicit confirmation of a current price war, there are concerns about maintaining discipline and avoiding erratic behavior. CMA CGM's significant investments in new vessels, media assets, and a major purchase indicate its strategic moves amid the industry challenges. The Saade family's net worth has seen a decrease, reflecting the broader impact on shipping tycoons in the industry.

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