CMA CGM: Ocean freight will be based on the actual sailing date

Recently, shipping giant CMA CGM announced that it will implement new regulations on routes exporting to China (except North America): the ocean freight will be based on the actual sailing date as the applicable freight date, and this regulation will take effect from April 1, 2022.

According to CMA CGM’s official announcement, the specific contents of this adjustment are as follows:

Freight applicable date: The actual departure date ( ATD) is the freight applicable date

Applicable routes: All routes from China (except North America)

Effective date: April 1, 2022 (Actual Departure Date - ATD)

This means that the freight agreed upon before sailing can only be used as a reference. If the actual sailing date changes, the freight that the shipper and the freight forwarder have to pay may also change accordingly. It is understood that this is the first shipping company among the global shipping giants to launch the settlement date based on the sailing date.

As soon as this news came out, it immediately caused an uproar in the industry: "Is this crazy?" "E-commerce and logistics are both working for shipping companies."

In the past, freight forwarders and cargo owners would determine the price before shipment. If the freight price on the actual sailing date is used as the standard, the contract between the cargo owner and the freight forwarder would be full of variables and might even lead to disputes.

In the current chaotic shipping market, with lower ship punctuality and freight rates changing every day, shippers are worried that if the goods have been loaded but the change in actual freight exceeds the price the shippers can afford, should they ship the goods or not?

In addition, another issue that shippers are concerned about is that if the departure delay is caused by CMA CGM's problems and the freight rate increases at this time, who should bear the increased freight rate?

The only good news is that the North American routes, which have the highest rate of shipping schedule changes due to congestion, are not within the scope of this adjustment.

Benefiting from the prosperity of the shipping market in the past two years, CMA CGM's profits have also risen. In the first three quarters of 2021, CMA CGM Group's operating income was US$38.447 billion, and its earnings before interest, taxes, depreciation and amortization (EBITDA) was US$14.864 billion. With ample cash flow, CMA CGM has also started an acquisition model to strengthen its layout in the e-commerce industry.

In December 2021, CMA CGM acquired the CLS business of Ingram Micro International to enhance CMA CGM's supply chain capabilities in contract logistics and e-commerce. In January this year, CMA CGM announced the acquisition of a 51% stake in French express company Colis Privé Group to strengthen its position and delivery capabilities in the e-commerce field.

CMA CGM

Ocean Freight

Freight Forwarding