CMA CGM Air Cargo Suspends U.S. Operations

DALLAS — CMA CGM Air Cargo (2C), the startup airline of France-based shipping giant CMA CGM, abruptly dropped logistics customers and stopped marketing its own service in the United States, according to FreightWaves.

Officials from the parent company confirmed that CMA CGM Air Cargo no longer offered space on its own cargo planes flying to Chicago and Atlanta from Europe to freight forwarders.

However, as of December 16, 2C's fleet and aircraft information on FlightRadar24 reveals that a number of widebody freighters registered to CMA CGM are currently operating for DHL Express (D0) and Qatar Airways Cargo (QR).

CMA CGM Air Cargo, a six-aircraft freighter operator, is still attempting to establish itself in a market it only recently entered 20 months ago.

Logistics companies moving regular amounts of freight with the carrier were shocked by the abrupt termination of service, which put their own customers' delivery commitments in jeopardy.

CMA CGM in the U.S.

Early in 2021, CMA CGM launched its air cargo airline as a part of a strategic plan to invest enormous shipping profits in logistics capabilities and develop into a provider of turnkey services to big multinational firms looking to simplify their supply chains.

Similar to the outstanding results from last year, the company reported a third-quarter operating profit of US$9.2bn with a profit margin of 46%.

CMA acquired four pre-owned A330-200 freighters from QR, established a base in Liège, Belgium, and contracted out the flying to Air Belgium, an earlier passenger-only carrier. Its first two destinations were Chicago and Atlanta.

The cargo airline received two factory-built Boeing 777 freighters last summer.

https://airwaysmag.com/cma-cgm-boeing-777/

Comments from CMA CGM

As a customer-centric company, we permanently adapt our offers to provide tailor-made services to our customers,” CMA CGM said in a statement provided to FreightWaves.

“To adjust to our clients’ needs, we have made the decision to temporarily suspend our connections with Chicago and Atlanta. Our customers have been kept well informed throughout this process.”

Global warehousing and freight management company owned by CMA CGM, Ceva Logistics was also impacted by the CMA service halt.

“Through regular communication with our carrier partner, we were aware in advance of CMA CGM Air Cargo’s decision. As a result, we were able to secure sufficient capacity with other partners in our carrier network and will continue to serve our customers needing air transport solutions to and from U.S. markets,” Ceva said in a statement.

CMA CMG operates in over 160 countries through 755 agencies.

Was the CMA CMG move an effort to achieve profitability more quickly amid deteriorating market conditions or something more? Be sure to send your comments on our social media channels.

This is a developing story.

Featured image: Miles Aronovitz/Airways