• 2011 September 1 13:55

    CMA CGM suspends Halifax service

    The Port of Halifax is losing another carrier, at least in the short haul. French shipping giant CMA CGM has decided to temporarily suspend direct calls to Halifax as part of its Black Pearl service to Kingston, Jamaica, TheChronicleHerald reports.

    Company spokeswoman Marie Lopez said by email Wednesday that the decision was made in response to market demand.

    "Nevertheless, and in order to keep providing our customers with the best service, CMA CGM decided to extend Cagema service (which calls on several Caribbean and eastern U.S. seaboard ports) up to New York, offering an opportunity for cargoes routed from Canada," Lopez said, declining to comment further on the decision to drop Halifax.

    Michele Peveril, a Halifax Port Authority spokeswoman, said she understood that CMA CGM was dropping the Black Pearl service from its schedule altogether.

    "The present market does not allow for a financially sustainable operation," she said.

    In a recent industry analysis, Drewry Shipping Consultants said declining North American container traffic, driven by slowing demand for retail merchandise and deteriorating freight rates, has led to the removal of some shipping services.

    Peveril said the port has other lines that link Halifax with the southern markets reached by Black Pearl and has a good relationship with CMA CGM.

    "Indications are that the shipping line had good support in Halifax and we continue to talk about future opportunities."

    Halterm president Ashley Dinning said the terminal’s parent company, Macquarie Infrastructure Partners of New York, has global joint venture relationships with CMA CGM.

    Dinning said "it’s never nice" to lose a client, but he said the Black Pearl service, which he said was being "abolished altogether," comprised a very small part of the terminal’s business — "single digits."

    CMA CGM will continue to move cargo to and from Europe through Halterm via Maersk Line, he said, and Halterm will continue to serve Zim Integrated Shipping Services, which makes direct voyages between Halifax and Kingston.

    The world’s third-largest container line, CMA CGM launched its service to Halifax in February 2009. The company chartered a vessel with a capacity of about 1,000 TEUs (20-foot equivalent units) for the service, which called at the Halterm container terminal every two weeks.

    The service connected Canada and the United States with the Caribbean, Central America, South America, Australia and Asia through CMA CGM’s Kingston hub.

    The CMA CGM decision followed the recent announcement that a five-member alliance of Asian shipping lines was halting service to Halifax this month.

    The Green Alliance, which included Canadian Tire Corp. among its customers, made weekly stops at Halterm.

    Its members include K Line, Hanjin Shipping, Yang Ming Line, Cosco Container Lines and Mitsui O.S.K. Lines (MOL).

    MOL spokesman Timothy Pajak said the alliance was dropping Halifax to improve delivery times.

    He couldn’t say if the service might resume at a later date, although port officials said the alliance told them it will review the route change early next year.

    The loss of the alliance leaves Halifax, which is considered a discretionary port compared to larger and more central locations such as New York, with three shipping lines that provide service to Asia.

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