CMA CGM A Strategy Makeover

In the spring of 2017, when Rodolphe SAADE the new Chief Executive Officer of CMA CGM Group walked in to his Mumbai office , he set a strategic course with four priorities for the group. It was every country head’s mandate to ship for the future. With abundant zeal, a fool proof plan and an ambitious team, Audrey Dolhen and her agency are making India future ready for her ship.

- Deepika Amirapu

Given that 90 per cent of the world’s trade moves by sea, shipping lines are by far one of the oldest industry houses globally. And so, for corporations that have been in trade for many decades, being conservative is a natural trait. Change comes slowly.

However, many a line today, led by the bigger ones are making waves in international and inter regional trade by taking big strides offering more services in other segments as a natural extension to their main line businesses. Slowly, but surely, carriers such as CMA CGM are moving with considered aggression to expand their products and services inland much as they introduce new ports of call to different destinations.

What do you think prompted this change? Several factors. For quite a few years after the financial blitzkrieg in 2008, shipping lines tried to stay afloat by cutting costs and capacity, attempting slow steaming and reworking their routes. Despite making these amends, the trade’s recovery was spotty because every attempt from the carriers’ side was met with redoubled efforts by corporate customers to control costs. With consolidation amongst liners from all over and of all sizes, most lines ran out of premium products and differentiating services. So, clearly, market economics is one reason to move shoreward. The second influencing factor is government policy. With many neo economic powers such as India and China focussing on improving their global logistics index and rank in the ease of doing business chart, policies such as Direct Port Delivery and Goods and Services Tax have impelled lines to consider the curious case of investing greatly in inland services. Lastly, but most significantly, the Big C has been the biggest harbinger of change. Changing needs of the customers has prompted CMA CGM among others to plunge in to making the first and last mile connectivity as seamless as the main leg.