CMA CGM exits Indian VSAs with Hapag-Lloyd and Maersk
In a significant move signaling a strategic overhaul, French liner giant CMA CGM has announced the termination of its vessel-sharing agreements (VSAs) with Hapag-Lloyd and Maersk on key trade routes out of India. The decision marks the company's departure from consortium-based operations in favor of standalone services, reflecting its confidence in its expanding fleet and global ambitions.
Strategic Exit from Longstanding Partnerships
The two affected VSAs are central to India-Africa trade routes:
Swahili Express (SWAX2): A loop operated with Hapag-Lloyd serving the India-East Africa corridor.
Midas Network: Comprising two strings co-managed with Maersk on the India-West Africa route.
These disengagements are part of CMA CGM’s wider response to industry realignments brought on by the Gemini Cooperation, which was officially launched in February. This new alliance reshaped global partnerships, leading CMA CGM to reassess its joint operations, including stepping back from its decades-long partnerships with Hapag-Lloyd on India–US East Coast and India–North Europe trades.
A New Era of Standalone Operations
As CMA CGM continues to expand its fleet capabilities, the company is increasingly leaning into independent operational control to strengthen its global footprint. By ending its remaining VSAs with Maersk and Hapag-Lloyd, the Marseille-headquartered carrier is aiming to optimize service reliability, enhance customer offerings, and tailor its operations to evolving market demands.
Implications for Indian Trade
CMA CGM’s exit from these alliances could bring about route restructuring and revised sailing schedules in the short term. However, industry observers believe this shift may offer long-term benefits such as improved service consistency and competitive pricing for shippers, as the company leverages its growing fleet to deliver direct services.
Looking Ahead
This bold move aligns with CMA CGM’s forward-looking strategy and demonstrates its confidence in maintaining a robust presence in India-Africa trades through independent capacity deployment. As global trade dynamics evolve, CMA CGM is clearly positioning itself to lead with autonomy, agility, and expanded service offerings.
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