CMA CGM Outsources New Trans-Pacific Service to Atlas Air

The airline, which was established in 2021, announced on Tuesday that it will take possession of two factory-built Boeing 777-200 cargo jets this year and one in the first quarter of 2025. It currently operates two 777s on scheduled service between Europe and Greater China but had not publicly revealed plans until now to acquire more of the large freighters.

Under its agreement with CMA CGM Air Cargo, Atlas Air will provide crews, maintenance and insurance. The Paris-based freighter airline needs Atlas Air to operate routes across the Pacific because it doesn't have traffic rights from the United States to transport goods from another country without first stopping in its home country.

The first aircraft is scheduled for delivery in June, after which CMA CGM Air Cargo will inaugurate service between Hong Kong, Chicago and Seoul, South Korea. The freighter will be available on the popular trade lane, where capacity is still tight because of trade tensions between the U.S. and China, for the peak shipping season. The second freighter, which Boeing is expected to deliver in the fourth quarter, will connect mainland China to North America, the company said.

CMA CGM in late 2021 placed an order with Airbus for four A350 freighters but has doubled the order to eight aircraft, the company disclosed in a passing reference. Airbus' order book, in fact, still shows four aircraft for CMA CGM. An airline spokesman confirmed the company now has firm commitments for eight of the cargo jets, which Airbus plans to begin rolling out to the market in 2026. Deliveries to CMA CGM are scheduled to continue through 2027 but could spill into 2028 because of normal adjustments producing a first-time aircraft and supply chain issues plaguing the aerospace industry.

The new aircraft represent a major investment by CMA CGM as it continues to diversify from a pure ocean carrier into an end-to-end logistics provider that can serve customers under a single brand. The company already owns Ceva Logistics, one of the largest warehousing and freight management companies in the world, and recently acquired France-based Bolloré Logistics for $5.2 billion.

CMA CGM Air Cargo's 777s currently operate five times per week from Paris to Hong Kong and four times per week to Shanghai. The fleet also includes three Airbus A330-200 medium-widebody freighters, two of which operate under dedicated charter agreements. The third A330 provides scheduled service three times per week between Paris Charles de Gaulle Airport, Mumbai, India, and Guangzhou, China.

"Our expansion into the transpacific lane marks a turning point in the company's history by connecting a new continent to our network and aligns with the ambition of the CMA CGM Group to offer a range of solutions to its customers" said CEO Damien Mazaudier in a news release. "This lane opening will enable us to offer even more destinations to our customers on major routes. Today's announcement represents a new step in the development of our business, which we aim to make global."

Learning curve

CMA CGM Air Cargo has repeatedly shifted direction since its start.

Tuesday's announcement follows the January dissolution of an alliance with Air France-KLM after less than a year. U.S. competition authorities made clear their opposition to the partnership operating North American routes because of how European regulators were treating U.S. carriers, but the sides were already having trouble figuring out how to coordinate operations in an uncertain market and were ready for a split.

As a newcomer to the airline industry, CMA CGM Air Cargo has struggled at times building up business. It discontinued trans-Atlantic service last spring after halting attempts to serve Chicago, Atlanta and Miami so it could focus on Asia routes. Last year, the Guangzhou service stopped in Abu Dhabi, United Arab Emirates. CMA CGM began life with four A330s that were temporarily operated by Air Belgium from Liege airport before the home base moved in 2022 to Paris.

But the airfreight market is in the midst of a strong recovery that started last fall, especially for e-commerce exports out of Asia to North America. Global air cargo volumes increased by double digits in the first quarter, which bodes well for new freighter capacity on the trans-Pacific trade lane. 

Atlas Air also provides a similar service for Mediterranean Shipping Co., but under that arrangement the four 777 freighters are owned by Atlas and provided to the startup airline through a lease that is bundled with transportation service.The post CMA CGM outsources new trans-Pacific service to Atlas Air  appeared first on FreightWaves.