France’s CMA CGM, the world’s third largest containerline, has implemented an industry-first early container return incentive program at the FMS terminal in Los Angeles and all CMA CGM return locations in Chicago, Dallas, Kansas City and Memphis. The program, designed to improve what the company describes as “supply chain fluidity”, will begin on Monday and continue until July 15, 2022.
CMA CGM’s new 60-day incentive program is projected to result in approximately 43,000 dry containers being put back into circulation within four days of pickup. Clients will get a $300 credit per dry container returned to eligible locations during calendar days one to four. After that a calculation of incentive credits will be carried out on a weekly basis with a credit memo issued every 14 days to each applicable importer.
Ed Aldridge, president of CMA CGM and APL North America, said: “CMA CGM is committed to doing everything we can to increase the fluidity and velocity of America’s supply chain. Our new program will result in an incentive credit for our importers, improve equipment availability for our exporters and expedite the flow of goods into and out of America’s heartland. It’s truly a win-win for everyone.”
The shipping industry has experienced an unprecedented spike in demand, leading to severe congestion throughout North America’s supply chain. Exporters have been impacted particularly hard by the challenges, with the lack of equipment making it more difficult to get their goods to market in a timely manner, something that has seen politicians in Washington start to try and enact laws to ensure American exports get to their destination easier.