Latest news with #CMACGM
Yahoo
6 hours ago
- Business
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CMA CGM's $600M Vietnam Port Project Reflects ‘Sharp' Container Demand
CMA CGM is strengthening its presence in Vietnam as the southeast Asian country stands to gain a more pivotal role in the global supply chain. The container shipping giant is investing $600 million to build a deep-water terminal complex at Hai Phong Port, which would be CMA CGM's first docking facility in one of Vietnam's northern ports. More from Sourcing Journal BGMEA Seeks 3-Month Delay for India's Land Port Ban on Garment Exports Vietnam Completes Second Round of Trade Talks With U.S. US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in CMA CGM has partnered with Saigon Newport Corporation to develop the project, which will have a capacity of 1.9 million 20-foot equivalent units (TEUs) and is scheduled to open in 2028. The agreement covers the design, construction and operation of two terminals in Hai Phong's Lach Huyen area. Vietnam has had more of a spotlight on its role in the apparel supply chain, both as the country seeks to negotiate its way out of a possible 46-percent tariff imposed by President Donald Trump, as well as handling an influx of goods from China. With imports from China escalating 22.5 percent in April and exports to the U.S. growing 34 percent, Vietnam's position is likely to carry more intrigue for logistics and shipping companies seeking to expand into new markets. 'The project is designed to meet the sharp increase in container volumes in northern Vietnam—one of Southeast Asia's fastest-growing economic zones,' CMA CGM said in a statement. 'This partnership will enable CMA CGM to secure long-term capacity in a region that has become central to Asian supply chains due to its rapid industrial and logistics development.' The facility will complement the two other terminals owned by CMA CGM: the Gemalink terminal in Cai Mep and the Vietnam International Container Terminal in Ho Chi Minh City. The ocean carrier operates 29 weekly services across seven ports in the country, as well as the company's intermodal network powered by subsidiary Ceva Logistics. Vietnam is also the backdrop of a zero-emission project CMA CGM is engaging in with partner Nike. By 2026, CMA CGM will launch a 100-percent electric barge, or 'e barge,' that will transport Nike goods along southern Vietnam's Dong Nai River between the Cai Mep and Binh Duong ports. On Tuesday, Vietnam's Deputy Prime Minister Tran Hong Ha held a meeting with CMA CGM CEO Rodolphe Saadé, according to a report from state-run Vietnam News Agency (VNA), in which the representative encouraged the French shipping tycoon to lead the way in green maritime transformation. Recently, CMA CGM has shown little hesitation to throw around capital to expand its influence internationally. In March, Saadé said the company was committing $20 billion to investing in logistics, shipbuilding and supply chain upgrades in the U.S. Under that commitment, the carrier will triple its number of U.S.-flagged ships, as the Trump administration and bipartisan lawmakers have pushed for a reinvigoration of American shipbuilding. Last month, Ceva Logistics acquired Turkish contract logistics and trucking firm Borusan Tedarik for roughly $440 million. That deal, which still needs approval from regulators, includes Borusan Tedarik's subsidiaries in Germany, Bulgaria, Hong Kong and China. Borusan Tedarik operates the largest port in Turkey's manufacturing hub of Gemlik, with an annual capacity to handle 1,500 ships and around 400,000 TEUs. The planned acquisitions would nearly double Ceva's warehousing and distribution footprint in Turkey, adding around 6.1 million square feet to its existing 6.7 million square feet of space. In addition, the combined ground transport activities would make nearly 1 million domestic transports per year, while Ceva's ocean freight capacity in the country set to increase by 25 percent. Last month, CMA CGM also completed the acquisition of cargo airline Air Belgium, including four freighter planes, as the company further builds out its air cargo ambitions. The Air Belgium brand will be preserved as part of the CMA CGM air cargo division launched in 2021, alongside 124 direct jobs out of roughly 400, including 72 pilot roles. Currently, the division operates regular services out of Paris with two Boeing 777F aircraft to Hong Kong and Shanghai and one Airbus A330F to Zhengzhou. CMA CGM also established another air freight hub in Chicago that hosts two Boeing 777F aircraft operated by Atlas Air on routes to Shanghai, Hong Kong and Seoul. CMA CGM operates an air cargo fleet of nine aircraft, including the Air Belgium jets: four Boeing 777Fs, three Airbus A330Fs and two Boeing 747Fs. The fleet will soon be reinforced by an additional Boeing 777F and further expanded from 2027 onward with the arrival of eight Airbus A350Fs. 'It immediately strengthens our air capacity while addressing current logistical challenges,' Damien Mazaudier, executive vice president of the air division at CMA CGM Group, in a statement. 'By preserving skilled jobs and accelerating the development of our network, this operation demonstrates our commitment to our customers and our ability to anticipate market evolutions.' Air Belgium's passenger operations will dissolve upon the sale. 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Time Business News
18 hours ago
- Business
- Time Business News
Global Marine Port Services Industry Poised for Robust Growth amidst Digital Transformation and Sustainability Initiatives
The marine port services industry is undergoing a significant transformation, driven by technological advancements, sustainability efforts, and increased global trade. Technological Advancements Fuelling Efficiency The integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and blockchain is revolutionizing port operations. These innovations enhance operational efficiency, reduce costs, and improve decision-making processes. For instance, the Port of Singapore's Tuas Mega Port is set to become the world's largest fully automated terminal, featuring over 1,000 battery-powered driverless vehicles and nearly 1,000 automated yard cranes. Similarly, the Port of Busan in South Korea has implemented an AI-based port logistics metaverse framework, resulting in a 79% improvement in ship punctuality and generating an additional USD 7.3 million in annual revenue. Sustainability and Green Initiatives Environmental sustainability has become a central focus for port operators worldwide. Over 40% of major ports are expected to implement green initiatives by 2025, including the adoption of renewable energy sources and emission reduction measures. For instance, APM Terminals, has committed to achieving net-zero emissions by 2040 and has already reduced its scope 1 and 2 emissions by 13% between 2022 and 2023. Infrastructure Investments and Global Trade Expansion Significant investments are being made to expand and modernize port infrastructure to accommodate larger vessels and increased cargo volumes. The Indian government, for instance, has invested approximately USD 25 billion in upgrading shipping and port infrastructure. These developments are crucial in supporting the anticipated tripling of maritime trade volumes by 2050, as projected by the OECD. India: Adani Ports and Special Economic Zone (APSEZ), India's leading private port operator, reported a consolidated net profit of INR 30.14 billion (USD 356 million) in the March quarter of fiscal 2025, surpassing analysts' forecasts. The company's marine services division saw an 82% revenue increase, with expectations to triple within two years. Brazil: CMA CGM, the world's third-largest shipping group, announced a USD 1.1 billion investment in Santos Brasil, a Brazilian port terminal operator. This move is part of CMA CGM's strategy to diversify into logistics and expand its presence in South America. United States: The Port of New York and New Jersey is seeking a greater share of profits from the ocean shipping industry by pushing for a cut of terminal sales transactions and increased revenues from business operations. This strategy comes as ocean carriers report high profits and major companies invest heavily in port facilities. About Author: HTF Market Intelligence is a leading market research company providing end-to-end syndicated and custom market reports, consulting services, and insightful information across the globe. With over 15,000+ reports from 27 industries covering 60+ geographies, value research report, opportunities, and cope with the most critical business challenges, and transform businesses. Analysts at HTF MI focus on comprehending the unique needs of each client to deliver insights that are most suited to their particular requirements. TIME BUSINESS NEWS
Yahoo
a day ago
- Business
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CMA CGM developing $600M Vietnam container terminal
CMA CGM Group is partnering with Saigon Newport Corp. to develop a new deepwater container terminal in Haiphong, northern Vietnam. The agreement covers the design, construction, and operation of the Lach Huyen terminals 7 and 8. The terminal will have a capacity of 1.9 million TEUs and is scheduled to open in 2028. The project comes amid a sharp increase in container volumes in northern Vietnam, and will enable Marseilles-based CMA CGM to secure long-term capacity as the region sees rapid industrial and logistics development. CMA CGM has been active in Vietnam since 1989, with offices in Ho Chi Minh City, Hanoi, Haiphong, Danang, and Quy Nhon. It operates 29 weekly services across seven ports in the country, connecting major global trade routes to an advanced intermodal network via Ceva carrier is co-owner of the Gemalink terminal in Cai Mep and the Vietnam International Container Terminal in Ho Chi Minh City. Find more articles by Stuart Chirls here. Maersk, Hapag-Lloyd partner on new Asia-Long Beach service Maersk more than halfway through $1B stock buyback Drewry: China-US container rates up by double digits Savannah sees record containers amid tariff frenzy The post CMA CGM developing $600M Vietnam container terminal appeared first on FreightWaves.
Yahoo
7 days ago
- Business
- Yahoo
Air Belgium has gone bankrupt, and thousands of passengers are unlikely to get refunds
A travel agency group is calling for EU law to be changed after a Belgian airline was liquidated last month, leaving 'thousands unlikely to receive refunds', and putting the financial burden on travel intermediaries. Air Belgium, a cargo airline that used to run passenger flights, has been taken over by a shipping company after the company fell into financial hardship and was liquidated. The airline announced on 30 April that a business court has approved CMA CGM group, which has deals in sea, land and air logistics, to take over the airline's cargo operations. As a result, the airline was placed into liquidation by the same court that approved the takeover. CMA CGM will continue to focus Air Belgium's activities on air freight, meaning 124 jobs, including 74 pilots, will be preserved. Meanwhile, other travel industry players have been left unsatisfied by how Air Belgium's bankruptcy was handled. The European Travel Agents' And Tour Operators' Association (ECTAA) released a statement on 15 May demanding urgent airline insolvency protection, claiming the bankruptcy has exposed travel agents, tour operators and customers to millions in losses. The association said the liquidation of Air Belgium has 'left nearly €8 million in outstanding passenger refund claims, of which more than €5 million was sold through travel intermediaries (travel agents and tour operators).' The airline initially ceased all scheduled passenger flights in September 2023 and shifted towards cargo and charter operations. At the time, Air Belgium said that passengers who had flights cancelled would be reimbursed 'as a matter of priority in the scope of the proceedings.' However, now that Air Belgium has gone bankrupt, the ECTAA said 'thousands of passengers are unlikely to receive refunds for their cancelled flights, with the remaining claims now part of the bankruptcy proceedings.' In a statement on the company's liquidation, Niky Terzakis, CEO of Air Belgium, said: 'Of course, we would have preferred a different outcome for our passenger operations, which impacted some of our employees and customers. 'However, this transfer was the only viable option after all other rescue paths were explored.' The ECTAA explains that when a travel intermediary sells a flight ticket as part of a package and the airline goes bankrupt, the package organiser is required by law to provide an alternative ticket to customers. However, there is no real prospect of recovering the original funds from the insolvent airline. 'This places an unfair financial burden on travel intermediaries, who are left to absorb the losses caused by airline failures,' it said. Air Belgium's liquidation has coincided with the Council of the European Union's recent discussions around the revision of the Air Passenger Rights Regulation. Due to this, the ECTAA is currently seizing the moment and urging policymakers to include measures guaranteeing the refund of ticket prices when flights are cancelled due to an airline ceasing operations or going bankrupt. Frank Oostdam, President of ECTAA, said: 'The Air Belgium bankruptcy is yet another stark reminder that the current system leaves both consumers and travel intermediaries exposed to unacceptable risks. 'Airlines must be required to provide financial guarantees to cover their liabilities in case of insolvency.' Mr Terzakis, CEO of Air Belgium, also explained why Air Belgium has struggled to survive and its move to being taken over by the shipping giant. 'Since its creation, Air Belgium has had to face a series of challenges, including several years of global crises brought on by COVID-19, the war in Ukraine, and others,' he said. 'The company took every necessary measure and did all it could to ensure its survival, despite the many obstacles. I am extremely proud of our staff for their loyalty, expertise, energy, and unwavering commitment. 'This is exactly what CMA CGM Group recognised in choosing to trust us with this takeover. CMA CGM is a dynamic and ambitious group with a strong position in the market. I believe our team will be an added strength.' 'The successful completion of this transfer was also made possible thanks to the cooperation of all stakeholders, including trade unions, the relevant Belgian authorities, suppliers and clients.' 'The preservation of jobs linked to cargo operations and the development of freight activities from our country offer encouraging prospects for the future and represent good news for the Belgian aviation sector.' The UK's Civil Aviation Authority states that if you have booked flights or a trip that includes flights with a travel firm that holds an Atol (Air Travel Organiser's Licence), the travel firm is responsible for your flight arrangements. It must either make alternative flights available for you so that your trip can continue or provide a full refund. If you are abroad, you should make arrangements to bring yourself home at the end of your trip. In terms of travel insurance, airline financial failure or insolvency is rarely included on most policies, so it is important to check if your package is Atol protected. The Independent has contacted Air Belgium for comment.
Yahoo
16-05-2025
- Business
- Yahoo
France's CMA CGM to redeploy fleet to avoid U.S. port fees on Chinese vessels
By Gus Trompiz PARIS (Reuters) -French shipping group CMA CGM will reorganise its global fleet to avoid U.S. port fees on Chinese-built vessels that are due to take effect from October, the company's finance director said. The port charges are another operational headache for shipping firms wrestling with the fallout from U.S. tariffs, though adjustments made by Washington after an industry backlash have made the fee scheme less disruptive than feared, Ramon Fernandez, CMA CGM's chief financial officer, told Reuters. U.S. President Donald Trump's administration aims to use the port fees to counter China's dominance in global shipbuilding and support a revival of U.S. maritime transport. "We have enough ship capacity to adapt to this situation and avoid paying fees," Fernandez said in an interview, adding that less than half of CMA CGM's fleet of around 670 ships were Chinese-built. On a complex scale of fees, Chinese companies operating ships built in China face the steepest levies for calling at U.S. ports. All shipping firms including China's COSCO would adapt to the fees, Fernandez added during a call with reporters, without commenting on the potential impact on Ocean Alliance, a vessel-sharing agreement in which CMA CGM and COSCO are among the partners. The world's third-largest container shipping line, CMA CGM, was hailed by Trump for a plan to invest $20 billion in the United States. Reporting first-quarter results, CMA CGM said a rush to ship goods before the U.S. tariffs announcement on April 2 had supported a 4.2% year-on-year rise in its maritime volumes, contributing to an increase in group sales and profits. Controlled by the French-Lebanese Saade family, CMA CGM also has a large logistics business and growing media interests. Echoing its peers, CMA CGM said the escalation in tariffs in April had stifled trade between China and the U.S., before a revival in demand this week following a Sino-American agreement to scale back tariffs temporarily. The group saw the cancellation of around half of bookings for May shipments between China and the United States prior to an upturn this week, Fernandez said. "Everyone is expecting trade in June to be much more active than was feared just a few days ago." He declined to give an outlook for full-year volume growth in container shipping, citing uncertainty over how the on-off trade war will play out.
