CMA CGM rolls out new INDAMEX service


CMA CGM announces the new INDAMEX service to meet growing demand between the Indian Subcontinent and the US East Coast.

French liner major CMA CGM has launched a renewed INDAMEX shipping line to cater to the growing demand between the Indian Subcontinent (ISC) and the US East Coast (USEC).

Starting August 15, the service will offer weekly fixed-day sailings with 8,500-TEU vessels departing from ISC to USEC.

CMA CGM will utilise dedicated assets at both ends, including terminals in Nhava Sheva, India, and New York, USA, ensuring priority berthing upon arrival throughout the year.

“This extraordinary measure will maintain CMA CGM capacity on a highly demanded route,” CMA CGM said as it works on ways to help alleviate supply chain pressures.

The INDAMEX will have a roundtrip rotation every 77 days via Cape of Good Hope between Port Qasim – Nhava Sheva – Mundra – New York – Norfolk – Savannah – Charleston – back to ISC.

The first departure of this service will take place on August 15th, 2024 from Port Qasim with M/V APL Southampton.

Supply chain pressures are intensifying as ships reroute around the Cape of Good Hope due to attacks on merchant vessels in the Red Sea, leading to a dramatic surge in freight rates surpassing pandemic-era levels.

Initially, excess vessel capacity in the market managed to temporarily alleviate these challenges. However, efforts to stock up and create inventories and implement lessons learned from the pandemic have inadvertently contributed to port congestion, further straining global logistics networks.

Moreover, the strategic connection between the US East Coast and the Indian subcontinent is increasingly important in reshaping global trade dynamics and bolstering supply chain resilience under evolving strategies like China+1.

As explained recently by Daniel Hackett of Hackett Associates, one of the key trends in the market is the adoption of supply chain diversification strategies by numerous companies and countries, reducing reliance on manufacturing solely in China. Diversifying production to include other countries or regions, such as the Indian subcontinent, not only mitigates risks associated with disruptions but also taps into burgeoning consumer markets driven by a growing population and expanding middle class.

Ports along the US East Coast, notably Savannah, are playing a crucial role in facilitating this connection as they offer competitive transit times, often 3-5 days faster than West Coast ports, according to the Georgia Ports Authority.

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