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CMA CGM’s CEVA Logistics enters into car carrier market

Eastern Pacific A mock up of an Eastern Pacific Shipping branded PCTC vessel
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, at nearly 200 metres in length, will each have the capacity to transport 7,000 cars with almost 59,000 square metres of effective deck surface spread across 12 levels. They will allow CEVA to transport about 140,000 vehicles per year between global markets, particularly China and Europe.

The ro-ro ships, which are being built by China Merchants Jinling Shipyard, will have hybrid power systems that include both LNG and electric battery capabilities. CEVA will have full commercial control over the ro-ro capacity and manage and operate the vessels under the lease agreement.

The first vessel is set to be delivered in December 2023, followed by the remaining three in 2024.

The new vessels will mark CEVA’s entry into the vehicle shipping market, enabling it to offer owned and controlled capacity to automotive customers and provide flexible shipping options and end-to-end services. The company will offer door-to-door solutions, taking delivery of finished vehicles directly from manufacturing facilities and managing transport to final destinations through its network of port connections, ro-ro capacity, car haulers, and vehicle depots.

CEVA Logistics will benefit from the expertise of the CMA CGM Group’s newly-formed specialty maritime shipping department which will cover: vehicle transport on car carriers; La Méridionale, a maritime shipping company operating ro-ro cargo and passenger ships (Ro-Pax), which is currently being acquired by CMA CGM; the firm’s investment in Brittany Ferries, in which CMA CGM invested around $28m in 2021 to support its recovery; and the future capacity of Neoline, the first wind-powered ro-ro vessel, which the company is helping to finance.

“As the automotive supply chain continues to stabilise from numerous shocks over the past several years, we have remained close to our customers to understand their challenges and growth opportunities. The decision to operate four deep-sea ro-ros is a clear example of our promise of responsive logistics,” said Emmanuel Cheremetinski, global FVL leader, CEVA Logistics.

CMA CGM took over CEVA Logistics in 2019 to expand its land logistics services in a deal valued at about $1.7bn.