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An air cargo partnership that Air France-KLM and CMA CGM unveiled last May has been launched with the two groups’ complementary air cargo service offering extended freighter capacity, a broader global network and tailor-made solutions
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The partnership aims to lift both groups’ competitiveness in the global air cargo sector, which is facing headwinds from high inflation and economic uncertainty
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The two groups aspire to invest in and shape the future of air cargo with game-changing solutions, focusing on sustainability, smart digitalization, and integrated technologies
Air France-KLM Group and CMA CGM Group announced on April 3 the effective launch of the long-term strategic air cargo tie-up they unveiled in May last year after receiving all mandatory regulatory approvals from competent authorities.
The partnership, initially lasting 10 years, combines Air France-KLM Martinair Cargo and CMA CGM Air Cargo’s complementary cargo networks, full freighter capacity and dedicated services “to build an even more compelling offering thanks to their unrivalled knowhow and global footprint,” the two French transport giants said.
This partnership also aims to strengthen both groups’ competitiveness in the global air cargo industry, which is flying into headwinds from economic challenges spawned by high fuel prices and elevated inflation that have slowed consumer demand for goods and shipping services.
The latest industry update from Xeneta, an air and ocean cargo trading and analytics platform, said despite 12 consecutive months of declining volumes in the global market, air cargo volumes have shown a greater degree of resilience to economic challenges on the trans-Atlantic westbound corridor, a major market both Air France-KLM and CMA CGM air cargo units.
Xeneta aviation analyst Wenwen Zhang said Air cargo tonnage in the trans-Atlantic westbound market comprises just 4% of the overall market tonnage, according to US Census data, but the air freight value accounts for 62% of the total market share.
Zhang had said earlier the Europe-US average general cargo air freight rate fell 14% year on year to US$4.18 per kg on January 15 as cargo capacity rebounded from belly hold on passenger flights. But the rate was 72% above the 2019 pre-pandemic level due to higher operating expenses while supply and demand exceeded pre-pandemic averages.
For the past 10 months, Air France-KLM and CMA CGM secured approvals for the strategic air cargo tie-up from aviation and antitrust regulators in various jurisdictions globally, excluding North America (United States, Mexico, Canada), Russia, Turkey, and Mauritius.
Adriaan Den Heijer, Air France-KLM executive vice president – Cargo and Cooperation Lead, said “our strategic long-term air cargo partnership with CMA CGM Air Cargo…will accelerate the expansion of our cargo business, a strategic activity for the Air France-KLM Group, by opening up a wide range of new opportunities, in terms of offerings, destinations and solutions to our customers.”
Guillaume Lathelize, chief executive of CMA CGM Air Cargo, said his company is France’s leading full-freighter airline that operates 6 aircraft.
“The company has demonstrated its flexibility and agility with scheduled services and charter solutions for key logistics players. Our partnership will combine the best of both worlds: flexibility, agility and world class expertise for regular and dedicated service,” Lathelize said.
The two groups said the partnership will help meet customers’ ever-increasing need for more integrated and resilient supply chains. It will leverage Air France-KLM’s vast air cargo franchise, experience and capabilities, particularly specialized cargo such as pharmaceuticals, perishables, and express, the groups said.
Support will come from a worldwide cargo network and at Air France-KLM’s global hubs at Paris-Charles de Gaulle Airport and Amsterdam Airport Schiphol.
Ocean shipping and logistics mammoth CMA CGM will mobilize its large commercial network and global logistics platform, the announcement said.
Air France-KLM and CMA CGM will jointly operate the full-freighter aircraft capacity of their respective airlines, which currently consists of a modern and efficient fleet of up to 12 full-freighter aircraft that the carriers could independently deploy on destinations outside the scope of their cooperation.
Both groups also aim to lead in sustainable aviation and have committed to net zero carbon by 2050. They have plans to reduce their environmental footprint through fleet renewal and use of sustainable aviation fuels.
