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CMA CGM implements incentives to ease congestion at Los Angeles and Long Beach

CMA CGM implements incentives to ease congestion at Los Angeles and Long Beach
Fenix Marine Services terminal will also expand its hours of operation

CMA CGM will implement an early incentive pickup incentive programme at the ports of Los Angeles and Long Beach, offering up to US$200 per container to help its customers offset costs incurred by supply chain tensions.

It will be effective on December 1 and continue for 90 days in an effort to improve the fluidity of the largest import gateway in the US.

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.

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 US$100 per container for daytime pickup from Monday to Friday and US$200 per container at night and on weekends.

It is expected that the French carrier’s commitment could exceed US$22m during the 90 days.

Additionally, CMA CGM will financially support the Fenix Marine Services terminal in expanding its hours of operation so that containers can be picked up day and night seven days per week.

Ed Aldridge, president of CMA CGM and APL North America, said: “By incentivising 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 US.

“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.”

With a thriving global economy, the shipping industry has experienced an unprecedented spike in demand throughout North America, leading to an increased pressure on capacity and ports.

The Marseilles-based company added 14 extra loaders and increased the number of available chassis by five times since the beginning of the pandemic.

It 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.