CMA CGM announced that it will implement the Early Container Return Incentive Programme at the FMS terminal in Los Angeles and all CMA CGM return locations in Chicago, Dallas, Kansas City, and Memphis.
The programme will begin on May 16, 2022, and continue until July 15, 2022, with the goal of accelerating the return of empty containers and ensuring US exporters have even greater access to equipment.
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 programme 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.”
As informed, 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.
For this reason, CMA CGM’s new 60-day incentive programme 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. More specifically, the details include:
A US$ 300 credit per dry container returned to eligible locations during calendar days 1–4.
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).
Utilisation of EDI transaction data to assess credit, thus no additional documentation required from customers.
This new initiative is the second incentive programme implemented by CMA CGM in the USA, following the Early Container Pickup Incentive Programme the Group initiated at the ports of Los Angeles and Long Beach at the end of 2021.
Gene Seroka, Executive Director of the Port of Los Angeles said, “With this incentive programme, the CMA CGM Group is facilitating a more robust flow of goods through the Port of Los Angeles and helping US 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.”
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 programmes 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 programme to encourage the early pickup of containers, which resulted in a 73% decrease in dwell of CMA CGM containers over nine 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 customised, market-based solutions to ensure greater reliability and predictability for US exporters.