Service slimming unites CMA CGM, Maersk in joint US-Asia loops

MAERSK and CGM are to combine their downsized service offering in May that will continue to link Asia to the US east and west coasts, according to a statement from the Marseilles-based CMA CGM.

This comes as a replacement of existing capacity, allows CMA CGM to strengthen port coverage on this trade with more efficient tonnage, and to strive for economies of scale especially in today's market environment, said CMA CGM North American vice president Jean-Philippe Thenoz.

The two shipping giants will launch two joint strings, adjusting their deployment in a new trade environment, made up of the Columbus Loop, a pendulum service linking Japan, China, south east Asia, and US east coast via Suez, south east Asia, China, Korea and Pacific north west of North America. There will also be the Hudson Loop, linking China, Korea and the US east coast via Panama.

These new services are expected to provide customers with improvements, extensive port coverage with calls from north China to the US east coast, and a service connecting all south east Asia origins in Singapore to New York and Norfolk, Virginia and Seattle and to Vancouver, British Columbia

There will also be calls from Hong Kong, south and central China as well as Korea to America's Pacific north west. There will also be weekly calls at Tangiers serving north and West Africa from the US east coast.

These strings will be operated with state-of-the art ships of 6,500 TEU via Suez and 5,100 TEU via Panama, providing competitive transit times - 25 days from Hong Kong/Shenzhen to New York, 21 days from Singapore to New York, 11 days from Shanghai to New York and nine days from Busan to Seattle.

Rotations will be: (Columbus Loop) Shanghai, Hong Kong, Shenzhen (Yantian), Singapore, Suez, New York, Norfolk, Tangier, Suez, Singapore, Hong Kong, Shenzhen (Yantian), Shanghai, Busan, Seattle, Vancouver, Yokohama and back to Shanghai. (Hudson Loop) Ningbo, Shanghai, Qingdao, Busan, Balboa, Panama, Savannah, New York, Miami, Panama, Balboa and back to Ningbo.

Maersk and CMA CGM told Newark's Journal of Commerce that existing inter-company transpacific cooperation have worked well after their experience with the Maersk, CMA CGM and Mediterranean Shipping Co deal that replaced four competing services with three on which the lines share space between Asia and California.

Source: American Shipper