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Cargo services have been suspended and cargo planes have been leased to other air carriers. Delta Air Cargo has decided to temporarily withdraw from the US market!
Dec 20,2022
It is reported that CMA CGM Air Cargo, a subsidiary of CMA CGM Air Cargo, has stopped selling its cargo services in the United States and leased its aircraft to other air cargo companies. Analysts say the move may be to make a profit faster in the case of a weak market.
CMA CGM Air Cargo will no longer sell its own cargo space from Europe to Chicago and Atlanta to freight forwarders, but declined to explain the reason for the sudden change or explain the current use of cargo planes, the company's management confirmed.
A review of fleet and aircraft data on the aircraft tracking website FlightRadar24 shows that several wide-body freighters registered by Dafei are currently serving DHL Express and Qatar Airways Cargo.
It is understood that CMA CGM Air Cargo has a total of 6 freighters and has only been in the air transport market for 20 months. The immediate disruption of service is a shock to the logistics providers who regularly ship goods through the company and jeopardize their delivery commitments to their customers.
An executive of a US freight forwarder said: "From a commercial and brand perspective, this is extremely disruptive because it means that we have been promoting a service that no longer exists."
The strategic shift comes as CMA CGM Air Cargo is trying to build a track record of global air cargo traffic this year. Dafei executives seem to think they can achieve profitability faster by leasing planes at a fixed fee.
In a statement provided to FreightWaves, Dafei said: "As a customer-centric company, we will constantly adapt our services to provide tailor-made services to our customers. In order to adapt to customer needs, we have decided to temporarily suspend European flights to Chicago and Atlanta. Our customers are fully informed throughout this process."
CMA CGM Air Cargo will launch air cargo company CMA CGM Air Cargo in early 2021 as part of its strategic plan to invest huge shipping profits in logistics capabilities and become a contracted service provider to large multinational companies that reduce supply chain complexity.
Dafei's third-quarter operating profit was 9.2 billion US dollars, which was the same as the strong performance in the same period last year. The company posted earnings from its container and logistics business, but did not mention any details about air cargo.
In addition, CMA CGM Air Cargo's decision to withdraw from the US market at short notice has left freight forwarders who buy bulk space on their flights eager to find alternative arrangements for the goods they have already committed to transport for their customers.
According to the above-mentioned logistics executives, the withdrawal is even more disappointing because Dafei provides "excellent deferred air service", allowing the logistics company to consolidate cargo from the Rocky Mountains to the eastern Appalachian region in Chicago and ship goods to Western Europe at attractive prices. An air cargo service that is slower than direct flights but faster than sea freight has attracted many cargo owners, especially when container shipping companies cancel some voyages, port chassis shortages, and other maritime restrictions.
The source said: "This is a great overall service that is very marketable for our existing customer base and potential business in the (industrial) verticals we are selling."
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