French Shipping Lines to Implement New Charges From November 2024

CMA CGM is one of the world’s largest shipping lines specializing in container shipping and logistics. CMA CGM recently announced the introduction of new charges that will take effect on November 1, 2024. This adjustment is expected to have a significant impact on B2B companies, especially those engaged in international trade and logistics.

In this article, we will explore these new charges, discuss their potential impact on B2B businesses, and provide strategies on how third-party logistics (3PL) service providers can help mitigate challenges.

CMA CGM is a leading French container shipping company and logistics provider with a vast global network covering more than 160 countries. With a large fleet and extensive port operations, CMA CGM is a top choice for B2B companies that rely on international shipping.

CMA CGM Fee Adjustment Details

This adjustment will affect cargo transportation from specific locations in Canada to the Indian subcontinent, the Middle East Gulf, the Red Sea, China, Hong Kong and Macau Special Administrative Regions, and destinations throughout North Asia and Southeast Asia.

The specific fee adjustments are as follows:

West Coast of Canada to the Indian subcontinent, the Middle East Gulf and the Red Sea: an increase of US$200 for 20-foot containers and US$400 for 40-foot containers.

Halifax Port of Canada to China, Hong Kong and Macau Special Administrative Regions and North Asia and Southeast Asia: an increase of US$100 for 20-foot containers and US$200 for 40-foot containers.

Applicable goods: This increase applies to dry cargo, excluding open tops, flat racks and tanks.

Impact of the new Rate Recovery Initiative (RRI) on B2B companies

Increased costs

The new rates may lead to higher transportation costs, especially for companies that rely on ocean shipping. This will directly affect the final price of the product and the profit margin of the company.

Supply chain pressure

The rate adjustment may lead to a reassessment and adjustment of the supply chain, increasing the operational complexity of the company.

Decreased competitiveness

Small and medium-sized enterprises may face greater pressure because they have weaker cost control capabilities and may be at a disadvantage in market competition.

Strategies for coping with adjustments to shipping costs

Plan ahead: Understand the cost adjustments as early as possible and plan the logistics budget in advance.

Negotiation: Negotiate with CMA CGM or other logistics service providers to seek possible cost-saving solutions.

Optimize logistics: Reduce unit costs by optimizing packaging, improving loading efficiency, etc.

Consider alternative routes: Explore whether there are more economical transportation routes or methods.

How to mitigate the impact through third-party logistics service providers?

Optimize transportation solutions

Third-party logistics service provider Shopv can help companies optimize transportation routes and methods and choose more cost-effective shipping solutions.

Intensive transportation

By integrating the goods of multiple companies, Shopv can achieve economies of scale and reduce the transportation costs of individual companies.

Flexible response

Shopv has more flexible resource allocation capabilities and can quickly adjust transportation plans according to market changes to reduce the negative impact of rate adjustments.

Technical support

Using advanced logistics management systems and data analysis, Shopv can provide more accurate transportation and inventory management and improve supply chain efficiency.

CMA CGM's fee adjustments are a challenge for B2B companies, and B2B companies must proactively respond to these adjustments by establishing strategic partnerships with third-party logistics providers, enhancing supply chain visibility, diversifying transportation options, and effectively negotiating contracts. By implementing these strategies, companies can mitigate the impact of rising freight rates and maintain operational efficiency.

As your trusted logistics partner, Shopv is committed to providing efficient and economical logistics solutions to help your business remain competitive in the international market. For more information or to seek logistics services, please feel free to contact Shopv. We look forward to working with you to meet logistics challenges together.