TPM23: CMA Cma says it will "definitely" accelerate the shift of purchases in China in the post-pandemic era!

Peter Levesque, Cma Cma's new president of North America, said Tuesday at TPM23 that increasing U.S. sourcing from India, Southeast Asia and other regions is good for growth in the eastern U.S. and Gulf Coast ports, and the company plans to ride the wave with recent terminal deals and new ship services.

Levesque, who joined CMA Cma in November, told attendees at the JOC's TPM23 conference in Long Beach that while the supply chain has recovered from the pandemic, this one clearly reveals the risks of over-reliance on China for product sourcing. As a former chairman of the American Chamber of Commerce in Hong Kong, Levesque is at the forefront of American sourcing from China. He said the trend of shifting from China, which began during the 2018-19 tariff dispute, has become more urgent during the pandemic. "That shift has definitely begun," Levesque said. "It started with the trade war, and the pandemic has only accelerated the shift. Customers realise they are buying eggs from the same basket."

Vietnam has been the biggest near-term beneficiary of this shift, Levesque said. But he added that India, Africa, South America and Mexico will also become procurement hubs for the United States, which will reduce procurement risks and port congestion risks. "The shift to these areas tends to benefit east coast and Gulf ports,"

"Levesque said. "You can diversify not only your procurement, but also your ports. It really helps to make the system more liquid."

On the Gulf Coast, CMA Cma increased shipping capacity to and from Brazil in the fourth quarter. The service was cut for most of 2022, but was heavily used by US resin exporters.

Levesque said CMA CGM, in collaboration with its CEVA Logistics unit, is refocusing on export customers by increasing ship capacity and increasing the availability of empty containers.

"This is a commitment to support U.S. exporters. We are sending special trains to take the equipment to the right location, "he said. "We made a conscious decision that U.S. exporters were important." In MeEast, CMA CGM made a splash in December 2022 when it acquired the U.S. operations of GCT Terminals at the Port of New York and New Jersey.

Currently, THE two terminals serve The Alliance's shipping companies, while CMA CGM and its ship sharing partners in the Ocean Alliance are tied to other New York-New Jersey terminals. CMA CGM has not announced any plans to switch its ships to the GCT terminal as the acquisition still requires the port's approval, which is expected in May. The ports have also signed exit agreements with their current anchor ship companies, which could run until 2027, according to people familiar with the matter.

Still, Levesque said the acquisition of GCT and the Fenix Marine terminal in Los Angeles in 2021 demonstrate CMA Cma's commitment to North American shippers. "The ability to have flagship terminals on both the East and West coasts allows us to determine our own destiny and better serve key markets,"

'he said. No major upgrades are planned for Fenix Terminal, but GCT's Bayonne, N.J., terminal is adding the first new ship berth in New York and New Jersey in 60 years. When completed by the end of 2024, it will be able to service very large container ships. GCT's Staten Island terminal, which serves the newest shipping lines calling on the East Coast of the United States, has no specific expansion plans. But Levesque told JOC on the sidelines of TPM23 that it wanted to invest in the site after the acquisition was completed.

Source:ZESTSHIPPING