CMA CGM’s New Strategy To Control Port Congestion In US Ports

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  • A unique initiative to improve the fluidity of the supply chain, in line with the objectives of the Biden-Harris Supply Chain Task Force.
  • An incentive up to 200 USD per container to help CMA CGM customers offset costs incurred by supply chain tensions.

A recent news published in CMA CGM states that CMA CGM implements incentive program to ease congestion at the ports of Los Angeles and Long Beach.

A world leader in shipping and logistics

The CMA CGM Group, a world leader in shipping and logistics, will implement an Early Container Pickup Incentive Program at the ports of Los Angeles and Long Beach. It will be effective on December 1st and continue for 90 days, in an effort to improve the fluidity of the largest import gateway in the United States.

Congestion in southern California

Ports in southern California are suffering from severe congestion, and freight movement has been dramatically slowed across all modes of transport, leading to exceptionally long container dwell times.

An incentive to help CMA CGM customers offset costs incurred by supply chain tensions

The incentive will be provided to the importers that pick up their containers via merchant haulage from all the terminals in Los Angeles and Long Beach in the first eight days, with the intent that they will use it to offset costs incurred by tensions on their supply chains. The incentive will be:

  • 100 USD per container for daytime pickup from Monday to Friday;
  • 200 USD per container at night and on weekends.

22 million dollars over 90 days

CMA CGM’s commitment could exceed 22 million dollars over 90 days.

Additionally, CMA CGM will financially support the Fenix Marine Services terminal in expanding their hours of operation so that containers can be picked up day and night 7 days per week.

A full range of solutions deployed in the U.S. to meet consumer demand

With a thriving global economy, the shipping industry has experienced an unprecedented spike in demand throughout North America, leading to an increased pressure on capacity and ports.

CMA CGM added 14 extra loaders and increased the number of available chassis by five times since the beginning of the pandemic.

The Group is also deploying a full range of solutions to meet the demand, including an increase in capacity up to 16% to and from the United States in the coming months.

Delivering end-to-end customer

CMA CGM leads the industry in delivering end-to-end customer solutions with an extensive logistics footprint that includes not only integrated cargo capabilities but an air cargo fleet as well.

Ed Aldridge, President of CMA CGM and APL North America, stated, “The CMA CGM Group is committed to doing everything we can to assist in improving overall supply chain velocity in southern California. By incentivizing the movement of containers off the terminals and ensuring pickups can be made on nights and weekends at FMS, we will decrease truck turn times and expedite the flow of goods into the United States. This is just one more way we are working with our port partners and the Biden-Harris Supply Chain Task Force to ensure shelves are full and Americans have access to the vital items they need on a daily basis.”

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Source: CMA CGM

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