RODOLPHE SAADE’S plan to create an all-embracing air, sea and land end-to-end global shipping and logistics service is taking flight with his airfreight division CMA CGM Air Cargo receiving two of four brand-new B777 freighters, writes Thelma Etim.
The wide-body cargo aircraft are a significant step forward for the chief executive of the CMA CGM mega-forwarder group who established the airfreight arm in March last year as part of an ambitious expansion strategy and in response to severe global capacity shortages during the pandemic.
The company has now taken delivery of its second B777F following a signing reception at Boeing’s Everett, Washington, USA base, having received its first of the type on 31 May.
CMA CGM Air Cargo has orders for two more B777 freighters which are scheduled to arrive in 2024 and which will see its fleet reach at least 12 Boeing and Airbus cargo aircraft by 2026, says a statement. The eventual fleet will include four A330-200Fs, currently in operation, and four A350Fs which will join the fleet between 2025 and 2026.
Olivier Casanova, chief executive of the company’s airfreight division, says the new freighters represent a milestone in its fleet development. “With four B777 freighters by 2024, complementing our existing fleet of four aircraft, CMA CGM Air Cargo will enlarge its network, linking Europe, Asia and America and provide a tailor-made range of transportation and logistics solutions to our clients, thanks to a modern, technically and environmentally efficient fleet,” he insists.
The latest delivery follows the CMA CGM Group announcing it has formally entered into a revenue-generating “strategic 10-year partnership agreement” with legacy airline Air France/KLM/Martinair (AFKLMP) Cargo. As part of that agreement, the logistics giant has also become a new shareholder in the European carrier and has a seat on the combination carrier’s board, whilst investing up to nine per cent – approximately €400 million – of its ex-post share capital over the 10-year period.
At the same time, a meeting of Air France-KLM’s shareholders has approved the appointment of Saadé as a member of its board of directors. Under that arrangement, AFKLMP and CMA CGM will jointly exclusively operate the full-freighter aircraft capacities of their respective fleets – which will consist initially of 10 full-freighter aircraft, but with an additional combined 12 new aircraft on order.
The freight shipping giant’s first quarter results show its logistics segment is on an upwards trajectory. Logistics revenue stood at US$ 3.4billion, whilst earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached $250 million, says a statement. “This growth was mainly driven by shipping and airfreight activities,” it points out.
“Contractual logistics activities continued their turnaround despite the inflationary context that weighed on operations and profitability. CEVA [its subsidiary] mitigated this impact through its commercial dynamism in the consumer and retail sector, and e-commerce in particular,” the statement adds.
Saadé points out: “During the first quarter, our group accelerated the deployment of its strategy to become a world leader in integrated logistics. We have also taken further steps in our energy transition by forging innovative partnerships to develop low-carbon fuels and by deciding to diversify the energy sources for our future vessels.
“Due to strong demand, lack of available transport capacity and persistent port congestion, tensions in global supply chains are expected to continue. We remain mobilised to improve service quality and to meet the logistics challenges of our customers. We are also vigilant in the face of the risk of a deterioration in the global economic situation, linked to the pandemic, the rise in inflation and/or the war in Ukraine,” he stresses.
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