CMA CGM offers cash incentive for early return of containers

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Port of Los Angeles

CMA CGM will launch a “cash for early container return” program in a bid to facilitate the movement of goods through US supply chains, claiming it as a first.

The French carrier will accept returns at one of its facilities in Los Angeles, Chicago, Dallas, Kansas City and Memphis from May 16 to July 15, with an incentive of $300 for boxes returned within four days of collection.

Ed Aldridge, President of CMA CGM and APL North America, said, “CMA CGM is committed to doing everything in its power to increase the fluidity and velocity of the US supply chain.

According to the carrier, the incentive program is expected to “result in approximately 43,000 dry containers being put back into circulation within four days of pickup.”

Incentive credits will be calculated weekly and a credit note will be issued every 14 days to each importer/consignee listed on the bill of lading. The company will use electronic data to assess credits with no further documentation required.

“This is the second incentive program implemented by CMA CGM in the United States, following the early container pickup incentive initiated at the Ports of Los Angeles and Long Beach in late 2021,” the carrier said. .

Since the start of the global pandemic, supply chains across the world have been disrupted by a shortage of empty containers as goods piled up in US and European ports. Supply chains in the United States have been particularly hard hit, with carriers and terminal operators placing heavy loads on boxes at the terminal for long periods.

However, as the pandemic progressed, the chorus of complaints from shippers to the United States Federal Maritime Commission regarding unfair freight charges, particularly detention and demurrage charges, increased dramatically.

A case has been filed by the Intermodal Motor Carriers Conference of the American Trucking Associations (IMCC), which claims that carriers from the three major alliances, including CMA CGM, as well as the Ocean Carrier Equipment Management Association and Consolidated Chassis Management Inc. , have limited the choice of containers. moves.

IMCC alleges that carriers tied carrier carriage to marine contracts and that the choice of chassis was restricted by carriers designating a particular merchant carrier and withdrew from chassis interoperability agreements, further once limited choice for cargo owners.

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