CMA CGM Launching Early Container Return Incentive Program to Increase Supply Chain Fluidity
- The CMA CGM Group is committed to assisting in the overall effort to improve supply chain velocity in the United States.
- The Group's new early return incentive program will deliver 300 USD per container to help customers offset costs.
- The CMA CGM Group continues to implement solutions designed to support U.S. exporters and expedite the flow of goods.
NORFOLK, Va., May 12, 2022 /PRNewswire/ -- The CMA CGM Group, a global leader in sea, land, air and logistics solutions, announced today that it will implement the shipping industry's first Early Container Return Incentive Program at the FMS terminal in Los Angeles and all CMA CGM return locations in Chicago, IL; Dallas, TX; Kansas City, KS; and Memphis, TN. The program will begin on May 16, 2022, and continue until July 15, 2022, with the goal of accelerating the return of empty containers and ensuring U.S. exporters have even greater access to equipment.
A Group committed to assisting in the overall effort to improve supply chain conditions
The shipping industry has experienced an unprecedented spike in demand, leading to severe congestion throughout North America's supply chain. Exporters have been impacted particularly hard by the challenges, with the lack of equipment making it more difficult to get their goods to market in a timely manner.
Throughout the crisis, CMA CGM has leveraged its extensive capabilities that include sea, land, air and logistics services to provide an array of flexible transport and logistics solutions to assist customers. The company has also significantly invested in industrial assets (vessels, containers, chassis, aircraft, terminals and warehouses) and implemented several industry-leading programs designed to decrease congestion and help both partners and customers navigate the complex environment.
Not only was CMA CGM the first to freeze spot rates, the company also implemented a program to encourage the early pickup of containers, which resulted in a 73% decrease in dwell of CMA CGM containers over 9 days in Southern California. And in March, the Group dedicated vessel capacity to small and medium enterprises in both Europe and North America at rates typically only provided to high-volume shippers.
The Group is also collaborating with industry associations like the International Dairy Foods Association (IDFA) to develop customized, market-based solutions to ensure greater reliability and predictability for U.S. exporters.
A groundbreaking incentive to assist U.S. exporters and expedite the flow of goods
CMA CGM's new 60-day incentive program is projected to result in approximately 43,000 dry containers being put back into circulation within 4 days of pickup on or after Monday, May 16, 2022. Details include:
- A 300 USD credit per dry container returned to eligible locations during calendar days 14.
- Calculation of incentive credits on a weekly basis with a credit memo issued every 14 days to each applicable importer of record (consignee listed on the Bill of Lading).
- Utilization of EDI transaction data to assess credit, thus no additional documentation required from customers.
This new initiative is the second incentive program implemented by CMA CGM in the USA, following the Early Container Pickup Incentive Program the Group initiated at the ports of Los Angeles and Long Beach at the end of 2021.
Ed Aldridge, President of CMA CGM and APL North America, said, "CMA CGM is committed to doing everything we can to increase the fluidity and velocity of America's supply chain. Our new program will result in an incentive credit for our importers, improve equipment availability for our exporters and expedite the flow of goods into and out of America's heartland. It's truly a win-win for everyone."
Gene Seroka, Executive Director of the Port of Los Angeles, said, "With this incentive program, the CMA CGM Group is facilitating a more robust flow of goods through the Port of Los Angeles and helping U.S. exporters get their product to destinations around the globe more quickly. CMA CGM has been a reliable partner to the Port of Los Angeles and a driving force for change throughout the spike in demand."
About CMA CGM
Led by Rodolphe Saadé, the CMA CGM Group, a global leader in sea, land, air and logistics solutions, serves more than 420 ports around the world on five continents. Backed by a fleet of 566 vessels, in 2021 the Group transported 22 million TEU (twenty-foot equivalent units) containers. With its subsidiary CEVA Logistics, a world leader in logistics, which transports 474,000 tons of air freight and more than 21 million tons of land freight each year, and its air freight division CMA CGM AIR CARGO, the CMA CGM Group is continually innovating to offer its customers a complete and increasingly efficient range of new shipping, land, air and logistics solutions.
Committed to the energy transition in shipping, and a pioneer in the use of alternative fuels, the CMA CGM Group has set a target to become Net Zero Carbon by 2050.
Through the CMA CGM Foundation, every year the Group helps thousands of children through its actions to promote education for all and equal opportunity. The CMA CGM Foundation also acts in humanitarian crises that require an emergency response by mobilizing the Group's shipping and logistics expertise to bring humanitarian supplies around the world.
Present in 160 countries through its network of more than 400 offices and 750 warehouses, the Group employs more than 130,000 people worldwide, including 2,900 in Marseilles where its head office is located. In the United States, the CMA CGM Group, which is headquartered in Norfolk, Va., employs more than 12,000 people. Its subsidiary, American President Lines (APL), operates a fleet of U.S.-flagged vessels and supports U.S. territories and American military stationed around the world. Learn more at cmacgm-group.com
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SOURCE CMA CGM