CMA CGM has formally announced a second weekly string connecting Australia and New Zealand with Central and East Coast North America.
The new Kea service will be accomplished via a slot-charter agreement with Maersk Line, first announced by the latter in mid-December [DCN 16 December], on the OC1 service.
CMA CGM says the Kea service will complement its existing PAD product, “positioning us as the only carrier able to offer two weekly departures on this trade.
“Southbound, we will now provide full US East Coast coverage, including New York, Philadelphia, Savannah, and Charleston - along with an import call in Tauranga. Northbound, the service will offer extended port coverage including Port Chalmers and Charleston,” the carrier said.
The full Kea rotation (i.e. that of OC1) will be Philadelphia / Charleston / Balboa / Tauranga / Sydney / Melbourne / Port Chalmers / Tauranga / Manzanillo / Cartagena / Philadelphia / Charleston, commencing in early February with the 3,760 TEU Spirit of Melbourne: NB Voyage 0K200N1MA: ETA AUSYD (03.02) / AUMEL (06.02) / NZPOE (14.02) / NZTRG (18.02) / PAMIT (10.03) / COCTG (11.03); SB Voyage 0K201S1MA: ETA USPHL (17.03) / USCHS (20.03) / PABLB (28.03) / NZTRG (16.04). (NB: The inaugural applicable vessel differs from the original Maersk announcement, which designated Oluf Maersk.)
According to the official space charter agreement filed with the US Federal Maritime Commission
· Maersk shall charter to CMA, and CMA shall purchase from Maersk, space for 350 TEU or 4,900 tonnes (whichever is reached first), including 100 reefer plugs, per roundtrip on each sailing of Maersk’s OC-1 service.
· Slots in addition to those set forth above may be provided, subject to space availability and Maersk’s discretion.
· All of the foregoing slots shall be chartered on such terms and conditions as the Parties may agree from time to time.
· CMA may not sub-charter slots made available to it hereunder to third parties without the prior written consent of Maersk; provided, however, that CMA may sub-charter slots to its vessel-operating affiliates (as may change from time to time) without prior consent [This would appear to acknowledge CMA CGM’s PAD service partnership with Marfret].
· CMA shall remain responsible for slots it sub-charters, which may not be further sub-chartered without the prior consent of Maersk. Any sub chartering by CMA to an affiliate shall be terminated immediately if the affiliate ceases to be an affiliate of CMA.
· CMA may use the slots it receives hereunder to move cargo between ports in the same region provided it does not exceed its allocation, subject to operational constraints, time constraints, and applicable law.
· If CMA does not use its full allocation, the unused slots and/or reefer plugs shall be available for use by Maersk free of charge, provided such slots/plugs are available to CMA at the next port of call.
As previously analysed [DCN 16 December] the new agreement between the two carriers is a defensive/ aggressive move to counter MSC’s Eagle service, which is due to launch on 1 February on a rotation of Port Botany, Melbourne, Brisbane, Tauranga, Wellington, Rodman, Cristobal, Philadelphia, Savannah, Freeport, Papeete, Auckland, Port Botany.
The Eagle schedule lists eleven ships from 2,556 TEU to 4,043 TEU, with refer capacity ranging from 586 TEU to 1,109 TEU, giving a clear indication of the Swiss carrier’s target market in a direct attack on Maersk and CMA CGM/Marfret.
MSC has been taking slots on OC1 since 2011 and will continue to do so until end-January, at 525 TEU per week in each direction.