CEVA Logistics by CMA CGM enters the car transporter market Ship’s crew

CEVA Logistics has signed a 10-year lease agreement with parent company CMA CGM to lease four roll-on-roll-off (RORO) vessels from Eastern Pacific Shipping.

The LNG dual-fuel hybrid deep-sea vessels, each with a capacity of 7,000 cars, will enable CEVA to ship approximately 140,000 vehicles per year between global markets, particularly China and Europe.

The RORO vessels, to be built by China Merchants Jinling Shipyard, will feature hybrid propulsion systems that include both LNG and electric battery capabilities. CEVA will have full commercial control of the RORO capacity and will manage and operate the vessels under the lease.

The first ship is scheduled for delivery in December 2023, the other three ships in 2024.

The new ships mark CEVA’s entry into the vehicle transportation market, allowing the company to offer automotive customers owned and controlled capacity, and to provide flexible shipping options and end-to-end services. The company will offer door-to-door solutions, accepting finished vehicles directly from manufacturing facilities and managing transportation to final destinations worldwide through its network of port connections, RORO capabilities, auto transporters and vehicle depots.

CEVA will also strengthen its Cars-in-Container solution, which offers a more flexible option for shippers who need to transport small quantities of finished vehicles to strategic ports or inland locations not easily reached by their own RORO vessels or other carrier partners are. CEVA has the global network and specialized capabilities to manage container loading and unloading of finished vehicles, a step that can often make the solution too time consuming and labor intensive for shippers.

CEVA will benefit from the expertise of CMA CGM Group’s newly formed division dedicated to specialty ocean shipping, including vehicle transport on Auto Carriers, La Méridionale, Brittany Ferries and Neoline.

“As the automotive supply chain has continued to stabilize after numerous shocks in recent years, we have stayed close to our customers to understand their challenges and growth opportunities. The decision to operate four deepwater ROROs is a clear example of our promise of responsive logistics,” said Emmanuel Cheremetinski, Global ATCO, CEVA Logistics. “Faced with such a large need for additional capacity, we have found a solution that allows us to work with our customers in the global economy to create long-term value by improving the time-to-market for their finished vehicles.”

France-based CMA CGM acquired CEVA Logistics in 2019 to expand its approximately $1.7 billion land logistics services.

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