Asia to North Europe – Customer Advisory

Dear valued customers,

Outstanding high levels of demand for transport between Asia and Europe, despite envisaged forecasts due to the global pandemic, are currently witnessed and thereof pressurize the overall logistics chain. Faced with this highly exceptional context, CMA CGM remains fully committed to meet its customers’ needs by implementing numerous actions to support your activity during this special period.

1- Increase of capacities to cope with the exceptional level of demand

• Deployed capacities by CMA CGM between Asia and North Europe during the Q4 2020 has increased by:

✓ +6% compared with Q4 2019, and

✓ +13% compared with H1 2020

• In the course of Q1 2021, taking stock of the launch of CMA CGM new generation of 23 000 TEUs vessels, CMA CGM will continue to increase deployed capacities by:

✓ + 10% compared with Q4 2020

✓ + 25% compared with Q1 2020

• For similar reasons, deployed capacities will continue to grow during Q2 2021 by + 5% compared with Q1 2021.

How do we reach this capacity increase with the target to meet your requirements?

✓ Phasing in of new 23 000 TEUs vessel, in replacement of smaller vessels cascaded on other trades. 3 vessels are already in service (CC Jacques Saadé since end September – CC Champs Elysées end October and CC Palais Royal delivered 27th November). 6 additional vessels will further be delivered from end December 2020 until July 2021.

✓ No blank sailing on FAL1 and FAL3 from Asia was performed since the rebound in demand from mid May 2020 (with exception of one unique void voyage on FAL3 during golden week).

✓ Each and every week, 2 sailings are then steadily offered by CMA CGM, as well as the sailings offered by our Ocean Alliance partners.

✓ One extra loader, « Merkur Fjord », will perform one CMA CGM sailing end of December 2020 from Asia to France.

2- Shortage of equipment in Asia

Although operational conditions remain challenging, several measures have been implemented since September to meet the strong increase in demand:

✓ Leasing of additional containers (in a context of strong restrictions of production of new equipment and limited leasing opportunities); further deliveries will start end December and January.

✓ Additional calls for CMA CGM vessels in Europe are implemented to load possible empty containers (ex UK, Tangiers).

✓ Alternative offers in Asia: 20’, NOR, 45’

✓ Requirement to Chinese importers to release equipment back to depots as fast as possible.

3- Congestion in terminals

The strong increase in global demand for transport paved the way for congestion issues in many ports where container yards are currently clogged with full and empty containers. Productivity of CMA CGM vessels at port is therefore impacted and waiting time prior of berthing has increased significantly. In Asia, ports of Central China and South East Asia are primary impacted by such congestion issues. In Europe, so far, mostly UK ports are impacted and, to a lesser extent, Rotterdam.

Taylor-made and innovative solutions are designed and implemented in order to mitigate to the best of our abilities the impact of local congestions.

Our sales teams remain fully available for any further information and assistance in your import / export activity.

Should you need any clarification please do not hesitate to contact us.

Thank you for your usual support,

Client Advisory...