French shipping group CMA CGM has launched a new incentive program aimed at speeding up the flow of cargo through the ports of Los Angeles and Long Beach.
The 90-day program, known as the Early Container Pickup Incentive Program, offers customers a rebate of up to $200 per import container for pick-up via merchant haulers within the first eight days of arrival on terminals.
CMA CGM said the intent is that customers will use the incentive to offset costs incurred by tensions on their supply chains. Specifically, they will $100 per container for daytime pickup from Monday to Friday and $200 per container at night and on weekends.
CMA CGM said it will also financially support the Fenix Marine Services terminal, at the Port of Los Angeles, in expanding hours of operation so that containers can be picked up day and night 7 days per week. Earlier this month, CMA CGM said it had reached a deal to acquire 100% owernship of terminal.
The further help ease congestion, CMA CGM has added 14 extra loaders and increased the number of available chassis by five times since the beginning of the pandemic. In the coming months, it will also increase capacity by 16% to and from the United States.
“The CMA CGM Group is committed to doing everything we can to assist in improving overall supply chain velocity in southern California,” said Ed Aldridge, President of CMA CGM and APL North America. “By incentivizing the movement of containers off the terminals and ensuring pickups can be made on nights and weekends at 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.”
Commenting on the incentive program, Port of Los Angeles Executive Director Gene Seroka said: “We applaud our longtime partners at CMA CGM Group for its first-of-a-kind incentive program designed to increase fluidity on San Pedro Bay terminals. Combined with an additional commitment to expand gate hours at Fenix Marine Terminals, CMA CGM exemplifies the strategic leadership and collaboration needed during this historic cargo surge.”
According to CMA CGM, the new incentive program commitment could exceed $22 million dollars over 90 days.
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