The CMA CGM Group commits huge new fleet to the Transpacific

The CMA CGM Group has announced that it will deploy starting end of May its flagship fleet of six 18,000 TEU vessels between Asia and the West coast of the U.S.

This decision is in line with both the growth strategy set by the Group in the United States and around the world and the optimization of its fleet.

The flagship fleet of the Group will hence be deployed on the most active and dynamic market to date - the trans-Pacific market - and will support its development as well as that of its shippers.

In total, 6 ships of 18,000 TEUS will join the Pearl River Express service; a series of 6 ships bearing the names of great explorers: CMA CGM Bougainville, CMA CGM Kerguelen, CMA CGM Georg Forster, CMA CGM Vasco de Gama, CMA CGM Zheng He and CMA CGM Benjamin Franklin.

The CMA CGM Benjamin Franklin became the largest ship ever to call in the United States last December and was inaugurated on February 19 in Long Beach, in the presence of Jacques Saadé, Chairman and Chief Executive Officer of CMA CGM, 450 customers, eminent persons from the economic and political spheres and institutional figures.

The CMA CGM Benjamin Franklin will remain on the Trans-Pacific market. The other five 18,000 TEU vessels will join her on the Pearl River Express line.

These ships are among the largest in the world. They are equipped with the latest environmental technology and they will significantly reduce CMA CGM’s carbon footprint.

This comes at a time when the container freight market is challenged by volatility and facing the prospect of further consolidation.

As reported in LM late last year,  member shipping lines in the Transpacific Stabilization Agreement (TSA) have announced a phased increase in rates and a package of 2016-17 service contract guidelines intended to ensure greater pricing predictability and service reliability.

“Transpacific lines are adjusting to a new normal of larger ships and complex alliances, necessitated by cost and environmental compliance pressures – all in the context of an uncertain global economic environment,” explained TSA Executive Administrator Brian Conrad. “Irrespective of cyclical supply-demand issues, it is critical that these global infrastructure providers get their pricing right and fully recover their costs through meaningful, staged rate increases heading into 2016.”

The CMA CGM Group is among the leading carriers in the TSA.