close relationships between carriers and forwarders that exclude others

News that Flexport has done a deal with Canada’s WestJet Cargo to fill its leased aircraft out of the US to Asia, has again put the spotlight on the close relationships between carriers and forwarders that exclude others.

One North American source noted that the deal, which sees Canadian cargo brought into the US by WestJet and then flown to Asia by Flexport, had “alienated most large forwarders”.

But perhaps of more concern for other forwarders – and shipping lines – is the relationship between CMA CGM and its subsidiary Ceva, according to a source within CMA CGM Group.

“Other forwarders should definitely be wary, their concerns are completely justified,” warned the source.

“Ceva is told to tell other shipping lines there is an internal policy of giving no more than 20% of volume to CMA on any particular trade. This is false,” claimed the source.

“Overall, CMA group has more than 50% of the Ceva volume, and on some trades it’s much higher. In the current market conditions, when carriers are needing volume, CMA demands Ceva support it above other carriers. We believe there are internal emails sent to ensure volumes are diverted to CMA from other carriers.”