CMA CGM Air Cargo, the startup airline of French shipping giant cma CGM, abruptly dumped logistics customers and stopped selling its own service in the US so it can lease the aircraft to other cargo airlines in an apparent effort to achieve profitability faster amid weakening market conditions, reports New York's FreightWaves.
Officials at the parent company confirmed that CMA CGM Air Cargo is no longer selling space to freight forwarders on its own cargo jets operating to Chicago and Atlanta from Europe but declined to give a reason for the sudden change or explain how the freighters are currently being used.
But a review of fleet and aircraft data on aircraft tracking site FlightRadar24 shows that several widebody freighters registered to CMA CGM are currently flying for DHL Express and Qatar Airways Cargo.
With six aircraft, CMA CGM Air Cargo is a relatively small freighter operator still trying to gain a foothold in a market it entered a mere 20 months ago.
The immediate cutoff of service was a shock to logistics providers moving regular amounts of freight with the carrier and jeopardised delivery commitments made to their own customers.
The shift in strategy comes as the new airline tries to build a book of business amid a global downturn in air freight traffic this year. CMA CGM executives seemingly calculated they could turn a profit faster by leasing the aircraft for a flat fee.
'As a customer-centric company, we permanently adapt our offers to provide tailor-made services to our customers,' said CMA CGM. '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.'
CEVA Logistics, a global warehousing and freight management company owned by CMA CGM, was also impacted by the parent company's pause in service.
'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 US markets,' CEVA said.
In September, CMA CGM Air Cargo began flying five times per week between Paris and Hong Kong deploying a 777 freighter. But Chicago O'Hare and Atlanta are not currently part of the airline's network.
Instead, one of the 777 cargo jets and an A330 are currently in service for Qatar Airways' cargo division, shuttling between various European airports and Doha.
SeaNews Turkey
Officials at the parent company confirmed that CMA CGM Air Cargo is no longer selling space to freight forwarders on its own cargo jets operating to Chicago and Atlanta from Europe but declined to give a reason for the sudden change or explain how the freighters are currently being used.
But a review of fleet and aircraft data on aircraft tracking site FlightRadar24 shows that several widebody freighters registered to CMA CGM are currently flying for DHL Express and Qatar Airways Cargo.
With six aircraft, CMA CGM Air Cargo is a relatively small freighter operator still trying to gain a foothold in a market it entered a mere 20 months ago.
The immediate cutoff of service was a shock to logistics providers moving regular amounts of freight with the carrier and jeopardised delivery commitments made to their own customers.
The shift in strategy comes as the new airline tries to build a book of business amid a global downturn in air freight traffic this year. CMA CGM executives seemingly calculated they could turn a profit faster by leasing the aircraft for a flat fee.
'As a customer-centric company, we permanently adapt our offers to provide tailor-made services to our customers,' said CMA CGM. '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.'
CEVA Logistics, a global warehousing and freight management company owned by CMA CGM, was also impacted by the parent company's pause in service.
'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 US markets,' CEVA said.
In September, CMA CGM Air Cargo began flying five times per week between Paris and Hong Kong deploying a 777 freighter. But Chicago O'Hare and Atlanta are not currently part of the airline's network.
Instead, one of the 777 cargo jets and an A330 are currently in service for Qatar Airways' cargo division, shuttling between various European airports and Doha.
SeaNews Turkey
