CMA CGM rolls out incentivised pickup scheme at Los Angeles and Long Beach
The CMA CGM Group will implement an Early Container Pickup Incentive Program at the ports of Los Angeles and Long Beach.
It will be effective on 1 December and continue for 90 days, in an effort to improve the fluidity of the largest import gateway in the United States.
CMA CGM’s commitment could exceed $22 million over 90 days, the French carrier forecasted.
The incentive will be provided to the importers that pick up their containers via merchant haulage from all the terminals in Los Angeles and Long Beach in the first eight days, with the intent that they will use it to offset costs incurred by tensions on their supply chains.
The incentive will be:
$100 per container for daytime pickup from Monday to Friday
$200 per container at night and on weekends.
Ports in southern California are suffering from severe congestion, and freight movement has been dramatically slowed across all modes of transport, leading to exceptionally long container dwell times.
Ed Aldridge, President of CMA CGM and APL North America, stated, “The CMA CGM Group is committed to doing everything we can to assist in improving overall supply chain velocity in southern California.
“By incentivising the movement of containers off the terminals and ensuring pickups can be made on nights and weekends at Fenix Marine Service (FMS), we will decrease truck turn times and expedite the flow of goods into the United States.
“This is just one more way we are working with our port partners and the Biden-Harris Supply Chain Task Force to ensure shelves are full and Americans have access to the vital items they need on a daily basis.”
The shipping industry has experienced an unprecedented spike in demand throughout North America, leading to an increased pressure on capacity and ports.
CMA CGM added 14 extra loaders and increased the number of available chassis by five times since the beginning of the pandemic.
The Group is also deploying a full range of solutions to meet the demand, including an increase in capacity up to 16% to and from the US in the coming months.