An incentive program designed to promote faster turnaround container times will reportedly provide participants with a $300 per day credit at several major hubs.
Recently launched by the CMA CGM, the world’s third-largest container shipping organization, the Early Container Return Incentive Program reduces the stress on exporters who struggled through the height of the supply chain crunch to ship goods and materials. Truckers will play a pivotal role in transporting empty containers to ports offering early return credits. An official announcement indicates Los Angeles, Chicago, Dallas, Kansas City, and Memphis began accepting returns under the program on May 16, 2022.
“CMA CGM is committed to doing everything we can to increase the fluidity and velocity of America’s supply chain,” Ed Aldridge, President of CMA CGM and APL North America, reportedly said. “Our new program will result in an incentive credit for our importers, improve equipment availability for our exporters and expedite the flow of goods into and out of America’s heartland. It’s truly a win-win for everyone.”
With headquarters in Marseilles, France, and Norfolk, Virginia, CMA CGM officials indicated the 60-day incentive program would likely result in 43,000 dry containers circulating back into use within four days after pickup. The company reportedly utilizes more than 257 shipping routes between 420 ports, across 160 countries. This strategy would provide exporters with increased access to outbound shipping containers based on the following program benefits.
- A $300 credit per dry container returned to eligible locations during calendar days 1–4.
- Calculation of incentive credits on a weekly basis with a credit memo issued every 14 days to each applicable importer of record (consignee listed on the Bill of Lading).
- Utilization of EDI transaction data to assess credit, thus no additional documentation required from customers.
Officials indicate that another early pickup incentive program resulted in a 73 percent decrease in the company’s containers dwelling more than nine days in logjammed California ports. Gene Seroka, executive director of the Port of Los Angeles, worked diligently through the supply chain crisis that left more than 110 cargo ships idling off the Golden State coast. With dozens still experiencing delays, Seroka appeared open arms to the CMA CGM early return policy.
“With this incentive program, the CMA CGM Group is facilitating a more robust flow of goods through the Port of Los Angeles and helping U.S. exporters get their product to destinations around the globe more quickly. CMA CGM has been a reliable partner to the Port of Los Angeles and a driving force for change throughout the spike in demand.” Seroka reportedly said.
The U.S. Congress has also been hard at work crafting laws to promote improved export opportunities and restrict empty containers leaving ports. All of these policies rely on truck drivers moving containers to meet growing demands.
Sources: ajot.com, gcaptain.com, maritime.com
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