CMA CGM Group Reorganizes Transpacific Trade Focusing APL on US Flag

CGM CMA reorganizes its transpacific service with APL focusing on US Government
file photo courtesy of APL

Published Jul 7, 2020 3:21 PM by The Maritime Executive

Shipping giant the CMA CGM Group is reorganizing its transpacific operations consolidating under one brand and expanding its use of Singapore as a hub for its operations in the Asia-Pacific region. In the process, the commercial operations of APL, one of the most storied names in American shipping history, are largely being phased out as the brand focuses on service to the U.S. Government.

“The reorganization of our transpacific trade will keep our global network more efficient and diversified,” said Stéphane Courquin, head of CMA CGM Asia Pacific. “The creation of a new Asia-Pacific hub in Singapore demonstrates our dedication to serve the region as we take supply chain efficiency to the next level, leveraging our expertise in shipping and logistics.”

Effective October 1, 2020, CMA CGM will become the sole commercial carrier of the group for transpacific operations. APL, which had continued its operations following the 2016 merger of Neptune Orient into CMA CGM will transition its express services to CMA CGM. APL will now focus on servicing the United States Government, providing its U.S. flag service, and continuing its service to the Guam-Pacific trade, which the company says directly benefits the people of Guam and Saipan.

“We are leveraging the very best of CMA CGM and APL, two major carriers in the U.S., to bring our customers an even more focused and streamlined customer experience,” said Ed Aldridge, President of CMA CGM and APL in the United States. “This simplification fortifies the Group’s number-one position in the country while enabling us to build upon APL’s rich heritage of U.S. flag-ship operations and service to the United States Government.”

Also as part of the reorganization of operations, the current CMA CGM regional office and NOL Limited will become a regional hub known as CMA CGM Asia Pacific Limited. The Singapore-based hub will drive CMA CGM’s development in the Asia-Pacific region and focus on delivering end-to-end shipping and logistics solutions and providing intra-Asia short-sea services through CNC. ANL Container Line Pty. Limited will become a subsidiary of CMA CGM Asia Pacific Limited providing Oceania routes.

In announcing these steps, the company said these steps would help the group to more effectively serve its customers and focus on delivering complete, tailored solutions in the transpacific market. The CMA CGM Group said that its strategy would allow the group to adapt to the economic and trade environment. The group will optimize its cost base and be positioned to achieve superior growth.