CMA CGM S.A. is the world’s 3rd largest container shipping company. Pre-pandemic, the only folks paying attention to supply chains were industry insiders and those managing day-to-day logistics. Yet, now that everyone’s goods worldwide have been affected thanks to untenable bottlenecks, supply chains are top of mind. In 2021, traditional shipping companies like CMA CGM needed quick solutions to an ever-growing problem and turned to the air. 

In March, CMA CGM AIR CARGO began deploying 4 Airbus A330-200F to offer a more agile and diversified solution to their customers. CMA CGM is not alone. Rival A.P. Moller – Maersk announced similar intentions in April with Denmark’s second largest airport, Billund, serving as its freight hub for the newly formed Maersk Air Cargo. Maersk currently counts on a fleet of 15 aircraft creating what they hope (along with CMA CGM) will be a one-stop-shop for all client cargo needs – sea or air. 

Maersk’s global head of air freight, Michel Pozas Lucic, mentioned in a phone call with CNBC that customers are so keyed into the supply chain issue that they’re placing increased scrutiny on a quality end-to-end logistics solution. Crisis or no crisis, efficiency remains front and center, and while ocean freight is still highly important, some of the products traditionally moved by sea are simply taking too long. An air option provides companies with an additional tool in their toolbox. 

Another factor driving air diversification is money. Maersk reported free cash flow this year to exceed $19 billion. Awash in cash, the Danish giant is set to purchase 3 Boeing 767s and lease another 4 by November. This will bolster the firm’s Asia-Europe and Asia-US routes while another 2 are set to arrive in 2024. Meanwhile, CMA CGM inked a deal with Air France-KLM to collaboratively share cargo space and is set to buy a 9% stake in the airline. 

A big reason why we’re not seeing similar moves by competing firms is many analysts posit the window has closed. Ocean freight demand has actually decreased over the last couple of months, so the pressure for air options is not what it was. This does not mean Maersk and CMA CGM made poor bets. Over the long run, the diversified play will likely yield greater alignment with existing customers and win them valued new contracts. The most compelling message both companies can communicate to existing or new clients is when the next supply chain crisis comes along (it’s only a matter of time) they’ll surely be prepared.