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Joint freight deal between Air France-KLM and CMA CGM collapses

Agreement would have tied air and ocean carriers together in cargo and investment, but partners point finger at Dutch and U.S. regulations

AirFrance Airframe_Base maintenance_A350_CDG-11.jpeg
Ben Ames
By Ben AmesJan 17, 2024
Ben Ames
Ben Ames is Editor at Large and a Senior Editor at Supply Chain Xchange's sister publication, DC Velocity.
See Full Bio

Airplane freight carrier Air France-KLM and ocean carrier CMA CGM will withdraw on March 31 from a 2022 agreement to launch a joint commercial cargo operation, blaming market regulations that hindered the success of the deal. 

First announced in May, 2022, the move became effective in April, 2023, but according to a joint statement from the partners, it failed because “the tight regulatory environment in certain important markets has prevented the cooperation from working in an optimal way.” 

Neither company specified the details behind their decision. But according to published reports, the breakdown happened when the Dutch government announced plans last year to cut the number of flights landing at Schiphol to reduce pollution, angering some air freight operators. That plan was later withdrawn, but it still created difficult chances for a U.S. regulatory approval of the Air France-KLM and CMA CGM partnership.

For the time being, CMA CGM remains a core shareholder in Air France-KLM. But following the dissolution of the agreement, its investment will now be effective only until February 28, 2025, and CMA CGM will step down from the Air France-KLM Board of Directors on March 31 of this year.

 

 

 

ArticleTransportationOceanAir
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ArticleTransportationOceanAir
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