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CMA CGM slashes services due to fuel costs

To mitigate the impact of high fuel costs, global shipping line CMA CGM is to withdraw from New Zealand on its NEMO service at the beginning of August.

The world’s third-biggest container shipping line said the pullout was inevitable to cut operational costs and enhance schedule integrity.

As NEMO’s New Zealand cargoes will be carried to Melbourne via trans-Tasman lines, ports at Tauranga and Lyttelton are expected to lose ship calls.

Lyttelton Port chief executive Peter Davie said the port would conduct an assessment of the impact of the NEMO pullout.

“This was a business decision taken by CMA CGM to streamline its own operations – CMA CGM has reiterated that our service levels were excellent and we were performing extremely well under the contract,” Mr Davie told the AAP.

The plan to exit New Zealand means NEMO’s customers in Sydney and Brisbane will receive northbound transits two weeks faster. The line is also adding a northbound Fremantle call for the first time.

The decision came after the CMA’s announcement in February that it would exit the NEMO service from the port of Auckland and consolidate at Tauranga.

Photo Courtesy of Fremantle Ports

www.fremantleports.com.au

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