Feb 23 Reuters CMA CGM CMACG.UL, one of the world39;s largest container shipping groups, said on Friday that its core earnings dived 82.5 in the fourth quarter from a year earlier, capping a dismal year that saw disruptions to trade in the Red Sea and weak consumer demand.

In 2022, CMA CGM had been France39;s most profitable company, overtaking the likes of TotalEnergies and LVMH with an annual net profit of 24.88 billion.

In 2023 net profit slumped to 3.64 billion, it said on Friday.

The outlook for 2024 remained uncertain and would depend on both macroeconomic and geopolitical factors, CMA CGM Chief Financial Officer Ramon Fernandez said in a call.

These included an expected rebound in world merchandise trade from 2023 lows and tensions in the Red Sea seen supporting freight rates, while additional capacity in the world39;s container ship fleet would pressure rates.

CMA CGM and other shipping groups have been affected by disruptions in the Red Sea since October as attacks by Yemen39;s Houthi militia on commercial vessels in response to Israel39;s war with Palestinian Hamas militants in Gaza have slowed trade between Asia and Europe.

On Tuesday, CMA CGM said its Jules Verne container ship transited the Red Sea under French naval escort, after suspending crossings for security risks earlier this month.

The shipping sector was also impacted in 2023 as inflation dampened demand for consumer goods and by a shift in consumer spending to services exacerbated by major…