CMA CGM and Air France-KLM have agreed to end their air-cargo partnership.

The ocean carrier entered a partnership deal with the airline holding company in May 2022, and it came into effect in April last year.

But the companies on Tuesday this week announced a decision to withdraw from the existing agreement from 31 March 2024.

“The tight regulatory environment in certain important markets has prevented the co-operation from working in an optimal way,” they said in a statement.

“Air France-KLM and CMA CGM have begun discussions on new terms and conditions of a commercial relation to operate independently from March 31, 2024 onwards.

“Both groups remain committed to work collaboratively, to ensure cargo customers can continue to benefit from their respective networks.”

CMA CGM became a shareholder a shareholder in Air France-KLM as part of the May 2022 deal and will remain a shareholder while the air-cargo partnership ends.

The companies said they had agreed to amend the existing lockup on CMA CGM shares in Air France-KLM’s capital, which will now be effective until 28 February 2025.

They also agreed that CMA CGM would step down from the Air France-KLM board of directors on 31 March 2024.