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SAFETY4SEA

CEVA Logistics, CMA CGM to operate four EPS LNG dual-fuel hybrid vessels

by The Editorial Team
May 4, 2023
in Green Shipping
Hanwha Ocean

Image hereabove is being used for illustration purposes only Credits: Shutterstock

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CEVA Logistics announced that it has signed a new 10-year lease agreement with its parent company CMA CGM to operate four Eastern Pacific Shipping’s (EPS) LNG dual-fuel hybrid deep-sea vessels.

As informed, the agreement will allow CEVA to transport approximately 140,000 vehicles annually between global markets, especially China and Europe.

According to the company, the RORO ships are currently under construction by China Merchants Jinling Shipyard (Weihai), with the first vessel expected to be delivered in December and the three subsequent ships coming in 2024. Under the lease agreement, CEVA Logistics will manage and operate the vessels with full commercial control over the RORO capacity.

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At nearly 200 meters in length, the vessels will each have the capacity to transport 7,000 cars thanks to nearly 59,000 square meters of effective deck surface spread across 12 levels. With a width of 38 meters, the ships will have a gross tonnage of 72,000 tons and move at a max speed of 19.5 knots. The RORO vessels’ hybrid power systems will include both LNG and electric battery capabilities.

The new vessels will enable CEVA to offer its owned, controlled capacity to automotive customers and provide a suite of flexible shipping options and end-to-end services.

CEVA is also strengthening its Cars in Containers solution to offer a more flexible option for shippers that need to transport small quantities of finished vehicles to strategic ports or in-land locations not easily served by its own RORO vessels or other carrier partners. With lower shipping rates and limited RORO capacity, carmakers can take advantage of this solution for reduced lead times and increased flexibility in terms of shipping schedules.

In addition, global new light vehicle sales are expected to reach nearly 83.6 million units in 2023, a 5.6 percent increase year-over-year, according to a recent forecast by S&P Global Mobility. With global 2022 production up approximately 6.0 percent over 2021 levels, estimates place 2023 production at 85 million units for a 4 percent increase from 2022. Production levels are not expected to reach pre-pandemic numbers before 2024 or 2025, according to various industry estimates. In 2022, China exported 3.1 million vehicles, a year-on-year increase of 54.4 percent, according to the China Association of Automobile Manufacturers (CAAM).

In operating and commercializing the new vessels, CEVA Logistics will benefit from the expertise of the CMA CGM Group’s newly formed department dedicated to specialty maritime shipping, including:

  • vehicle transport on car carriers
  • La Méridionale, a maritime shipping company operating ro-ro cargo and passenger ships (Ro-Pax), which is currently being acquired by CMA CGM (subject to the approval by regulatory authorities).
  • the Group’s investment in Brittany Ferries, in which CMA CGM invested €25 million in 2021 to support its recovery.
  • the future capacity of Neoline, the first wind-powered RORO vessel, which the Group is helping to finance.

As the automotive supply chain continues to stabilize from numerous shocks over the past several years, we have remained close to our customers to understand their challenges and growth opportunities. The decision to operate four deep-sea ROROs is a clear example of our promise of responsive logistics.

..said Emmanuel Cheremetinski, global FVL leader, CEVA Logistics.

With such a large need for additional capacity, we found a solution that allows us to co-create long-term value with our customers in the global economy by improving the go-to-market conditions for their finished vehicles.

..added.

CEVA Logistics, CMA CGM to operate four EPS LNG dual-fuel hybrid vesselsCEVA Logistics, CMA CGM to operate four EPS LNG dual-fuel hybrid vessels
CEVA Logistics, CMA CGM to operate four EPS LNG dual-fuel hybrid vesselsCEVA Logistics, CMA CGM to operate four EPS LNG dual-fuel hybrid vessels
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