France-based container shipping and logistic giant CMA CGM Group on Thursday announced it will invest $20 billion over four years in its U.S.-flag fleet, port terminals, an air cargo airline based in Chicago and warehouses in an apparent effort to align with President Donald Trump’s stated goal of bringing more industrial activity to America.
“I am proud to build on our long-standing relationship with the United States through this commitment of $20 billion to the country’s maritime future and logistics capabilities. Over the next four years, we will significantly grow our U.S.-flagged fleet, expand the capacity of key container ports on both coasts, develop state-of-the-art warehousing across the country, and establish a significant air cargo hub in Chicago,” said CMA CGM Chairman and CEO Rodolphe Saadé in a news release. “This will create 10,000 new American jobs and further strengthen our partnership with American customers and public authorities.”
Trump recently declared his intention to reinvigorate the U.S. shipbuilding industry and the merchant maritime sector to compete with China and strengthen the military industrial base. Trump sided with union dockworkers in their tense contract negotiations with maritime employers that operate U.S. port terminals, calling out foreign shipping lines for making huge profits from access to U.S. ports. A strike was averted in January when the International Longshoremen’s Association agreed to deal with terminal operators.
“I’d rather see these foreign companies spend [profits] on the great men and women on our docks, than machinery, which is expensive, and which will constantly have to be replaced,” he wrote on his social media site Truth Social. “In the end, there’s no gain for them, and I hope that they will understand how important an issue this is for me.”
CMA CGM said it will help rebuild American maritime capabilities through a series of investments, including moving extra ships from other flags to its U.S. subsidiary American President Lines. APL provides ocean transportation and in-country logistics to the U.S. government and military. It is incorporated in the United States and operates military-useful commercial vessels with U.S. mariners. The French carrier said it will also train and hire more American crew members to operate the new vessels.
In addition, the company promised to develop port infrastructure in New York, Los Angeles, Houston, Miami and Dutch Harbor, Alaska, to improve efficiency and container throughput. It’s unclear if the investments involve physical expansion or container equipment. A news release said the money will accelerate installation of digital technologies and help improve safety for port workers and cargo.
As part of the investment, CMA CGM’s cargo airline division will open an air cargo hub in Chicago and deploy five new American-made Boeing 777 freighter aircraft, operated by American pilots, to add capacity on key trade lanes. CMA CGM Air Cargo currently operates three Boeing 777s and one Airbus A330 in the Europe-Asia trade corridor. It launched trans-Pacific service with two Boeing 777s, operated by Atlas Air, in the fall.
The freight transportation conglomerate, which owns Ceva Logistics and Bollare Logistics, also said it will secure warehousing and automotive logistics platforms across the United States to provide more supply chain capabilities for customers.
The company also will open a new logistics R&D hub in Boston, in partnership with American technology partners, focused on advanced robotics and automation solutions that can further optimize logistics services.
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Write to Eric Kulisch at ekulisch@freightwaves.com.
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