French shipping group CMA CGM says it is simplifying its transpacific trade network by removing APL from the trade and naming CMA CGM as the group’s exclusive commercial carrier.
APL will instead focus on its U.S.-flag service with the United States Government through its fleet of U.S.-flagged vessels.
CMA CGM took control of APL as part of its 2016 acquisition of Singapore-based Neptune Orient Lines (NOL). CMA CGM says APL will now leverage its experience to to focus exclusively on servicing the United States Government, as well as its service to the Guam-Pacific trade.
“We are leveraging the very best of CMA CGM and APL, two major carriers in the U.S., to bring our customers an even more focused and streamlined customer experience,” said Ed Aldridge, President of CMA CGM and APL in the United States. “This simplification fortifies the Group’s number-one position in the country while enabling us to build upon APL’s rich heritage of U.S. flag-ship operations and service to the United States Government.”
In addition to changes to its transpacific network, CMA CGM will also be reinforcing Singapore as its Asia-Pacific regional hub. From October 1, Neptune Orient Lines Limited will be renamed to CMA CGM Asia Pacific Limited. ANL Container Line Pty. Limited will become a subsidiary of CMA CGM Asia Pacific Limited as part of this development
With this development, the CMA CGM says it is simplifying its brand strategy by designating CMA CGM as its global commercial carrier as its smaller brands focus on dedicated markets, inluding: APL, as the expert carrier in U.S. Government cargo; ANL, as the leader in Oceania, its core market; CNC, as the intra-Asia short-sea specialist; Mercosul Lines, as the Brazilian cabotage expert; and Containerships, as the multimodal transport intra-European leader.
“The reorganization of our Transpacific trade will keep our global network more efficient and diversified,” said Stéphane Courquin, Head of CMA CGM Asia Pacific. “The creation of a new Asia-Pacific hub in Singapore demonstrates our dedication to serve the region as we take supply chain efficiency to the next level, leveraging our expertise in shipping and logistics.”