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CMA CGM’s CEVA Logistics Makes Entry into Car Carrier Market

Illustration courtesy Wartsila

CMA CGM’s CEVA Logistics Makes Entry into Car Carrier Market

Mike Schuler
Total Views: 4300
May 3, 2023

CEVA Logistics has signed a 10-year lease agreement with parent company CMA CGM to lease four roll-on, roll-off (RORO) vessels from Eastern Pacific Shipping.

The LNG dual-fuel hybrid deep-sea vessels, each with a 7,000-car capacity, will allow CEVA to transport about 140,000 vehicles per year between global markets, particularly China and Europe.

The RORO ships, which are being built by China Merchants Jinling Shipyard, will have hybrid power systems that include both LNG and electric battery capabilities. CEVA will have full commercial control over the RORO capacity and manage and operate the vessels under the lease agreement.

The first vessel is set to be delivered in December 2023, with the other three ships coming in 2024.

The new vessels will mark CEVA’s entry into the vehicle shipping market, enabling it to offer owned and controlled capacity to automotive customers and provide flexible shipping options and end-to-end services. The company will offer door-to-door solutions, taking delivery of finished vehicles directly from manufacturing facilities and managing transport to final destinations globally through its network of port connections, RORO capacity, car haulers, and vehicle depots.

CEVA will also strengthen its Cars in Containers solution, which offers a more flexible option for shippers needing to transport small quantities of finished vehicles to strategic ports or in-land locations not easily served by its own RORO vessels or other carrier partners. CEVA has the global network and specialized capabilities to manage the container loading and unloading of finished vehicles, a step that can often make the solution too time-consuming and labor-intensive for shippers.

CEVA will benefit from the expertise of the CMA CGM Group’s newly formed department dedicated to specialty maritime shipping, including vehicle transport on car carriers, La Méridionale, Brittany Ferries, and Neoline.

“As the automotive supply chain continues to stabilize from numerous shocks over the past several years, we have remained close to our customers to understand their challenges and growth opportunities. The decision to operate four deep-sea ROROs is a clear example of our promise of responsive logistics,” said Emmanuel Cheremetinski, global FVL leader, CEVA Logistics. “With such a large need for additional capacity, we found a solution that allows us to co-create long-term value with our customers in the global economy by improving the go-to-market conditions for their finished vehicles.”

France-based CMA CGM took over CEVA Logistics in 2019 to expand its land logistics services in a deal valued at about $1.7 billion.

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