CMA CGM sees booming market for car transporters Ship’s crew

From Nick Savvides (The Loading Star) –

French container carrier CMA CGM, which is already spreading its wings by entering the air cargo and logistics markets, is looking to charter four ships, according to a well-placed company loading star Source to profit from the booming car transport business.

The auto transporter market has been a red hot topic since last year as reported by The loading starwith operators struggling with full ships and shippers being forced to book space three months or more in advance.

Rates have risen to new highs, pushing up profit margins, and container ships looking to invest their record two-year profits are looking to get involved.

It seems that CMA CGM isn’t the only container line chasing the big car carriers; HMM is reportedly reviewing the market and Cosco has ordered three more pure car and truck transport companies (PCTCs), bringing its order book to 24 for its auto division joint venture with SAIC Anji Logistics. Guangzhou Ocean Car Transporter.

In addition, so were the traditional PCTC operators order shipsincluding Hyundai Glovis with five ships on order and Italian operator Grimaldi with an order book of 15 ships.

Shipbroker Braemar tells The loading star The auto transport business is expected to continue to grow, with particular demand for the 7,000-unit PCTC. However, it added that by 2030 electric SUVs are projected to make up 50% of all cars transported at sea – “these cars are bigger and heavier because they’re electric and the batteries weigh more”.

The use of lithium-ion batteries in electric cars poses major challenges for the logistics industry, as they can sometimes catch fire and burn more intensely than other charges at over 1,000°C.

Marc Lefebvre, senior manager for security and safety of cargo at CMA CGM, said at a conference in London last week dedicated to the challenges of transporting Li-ion batteries that there were “no solutions in the IMDG code” for the dealing with battery fires. He added that there needs to be cross-industry collaboration to prevent batteries from igniting.

The loading star is recognized at the highest levels of logistics and supply chain management as one of the premier sources of influential analysis and commentary.

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