CMA CGM reshuffles Global fleet to escape US Port fees on Chinese-built ships
MARSEILLE : One of the world’s leading shipping companies, CMA CGM, has announced plans to reorganise its global fleet to avoid paying new US port fees targeting Chinese-built ships.
These charges are set to begin in October and are part of the US government’s strategy to reduce reliance on Chinese shipbuilding and boost domestic maritime operations.
According to CMA CGM’s Chief Financial Officer, the company has sufficient ship capacity to adjust operations and avoid the upcoming fees. Out of CMA CGM’s fleet of about 670 ships, less than half are built in China.
The US port fee system includes a detailed structure that places the highest fees on Chinese companies using ships made in China. The measure is an added burden for global shipping firms already dealing with the consequences of ongoing US tariffs.
However, the CFO stated that after backlash from the shipping industry, Washington made some adjustments to the plan, making the new fee setup less harmful than initially expected.
The changes will affect all shipping companies with China-built ships, including Chinese giant COSCO. While the financial executive acknowledged that all players would have to adapt, he did not comment on whether this would impact the Ocean Alliance-the world’s largest operational agreement between shipping companies in which both COSCO and CMA CGM are key partners.
CMA CGM, currently the third largest container shipping company in the world, was recently praised by the US government after announcing a $20 billion investment plan in the United States.
In its first-quarter results, the company reported a 4.2% year-on-year growth in maritime shipping volumes. This rise was largely due to a shipping rush ahead of the US tariff announcement on April 2, which also helped increase the group’s sales and profits during the period.
The group, which is controlled by the French-Lebanese Saade Family, is also involved in logistics and has been expanding its presence in the media sector.
Like many others in the industry, CMA CGM also faced a slowdown in trade between China and the US after the tariff escalation in April. It experienced cancellations of nearly the two countries scheduled for May.
However, the company reported a rebound in demand this week following a temporary agreement between the US and China to reduce tariffs. Despite the recent recovery, the company refrained from giving a full-year forecast for container shipping volume growth. The finance director pointed to continued uncertainty due to the unpredictable nature of the ongoing US-China trade tensions.
Source : Reuters
