CMA CGM to Invest $20 Billion in U.S. Maritime Transport and Logistics
French shipping and logistics major CMA CGM has decided to invest $20 billion over the next four years to strengthen the U.S. maritime transport and logistics, boosting the maritime economy and fostering shipbuilding capabilities.
According to CMA CGM, this “significant investment” strengthens its maritime transport and logistics partnership with the U.S., supporting the economy, boosting exports, and creating 10,000 new jobs.
CMA CGM has been present in the U.S. for 35 years, operating in 40 states, owning container shipping company American President Lines (APL), and transporting over 5 million shipping containers to and from the country each year.
The shipping player said it intends to foster U.S. shipbuilding capabilities, expand port infrastructure, grow logistics networks, and develop air cargo services through the latest investment.
Key Investments in the U.S. Maritime Sector
As disclosed, CMA CGM’s new program includes a range of targeted investments. One of them aims to advance the U.S. Administration’s recently-announced priority to strengthen American shipbuilding capabilities. This includes bolstering APL’s U.S. flag capacity and enhancing maritime resources with new jobs, skills, and technologies.
“These commitments will reinforce APL’s position as the leading carrier for U.S. government cargo transportation, while also ensuring the safe, open, and reliable access to the oceans necessary to promote America’s economic and national security ambition,” CMA CGM said.
In addition, CMA CGM plans to develop state-of-the-art warehousing and automotive logistics platforms across the country to improve U.S. logistics and supply chain infrastructure, expand air cargo capacity, and open a new logistics R&D hub in Boston, focusing on advanced robotics and automation solutions.
Chairman and CEO’s Statement
Rodolphe Saadé, Chairman and CEO of CMA CGM Group, elaborated on the investment: “I am proud to build on our long-standing relationship with the United States through this commitment of $20 billion to the country’s maritime future and logistics capabilities. Over the next four years, we will significantly grow our U.S.-flagged fleet, expand the capacity of key container ports on both coasts, develop state-of-the-art warehousing across the country, and establish a significant air cargo hub in Chicago. This will create 10,000 new American jobs and further strengthen our partnership with American customers and public authorities.”
Recent Developments
In recent company-related news, CMA CGM placed an order worth nearly $2.6 billion for twelve 18,000 TEU dual-fuel LNG containerships at Jiangnan Shipyard, a part of state-owned China State Shipbuilding Corporation (CSSC). The boxships are scheduled for delivery in 2028 and 2029.
The shipbuilding order came in the midst of the U.S. proposal to charge a fee of up to $1.5 million for Chinese-built vessels entering US ports in an attempt to curb China’s dominance in shipping, shipbuilding and logistics sectors.
While these measures are still under discussion, they could affect a massive number of vessels if implemented as Intermodal’s data shows that 41.5% of the total in-service fleet was built in Chinese shipyards, including 22.2% of the global tanker fleet, 32.2% of the container fleet, and 11.6% of the gas fleet.