UPDATE: July 12, 2018: CMA CGM has received all required regulatory approvals to move forward with its investment in CEVA logistics, the logistics company said in a press release.
- CMA CGM will acquire 25% equity stake in logistics provider CEVA, the shipping line announced Friday morning.
- The goal of the acquisition, CMA CGM says, is to reinforce and grow its presence in the logistics sector.
- As part of the agreement, CMA CGM and CEVA will look at opportunities for collaboration and integrated service offerings.
In the case of CMA CGM acquiring stake in CEVA, the ocean carrier shows it's no longer enough to be "just" a shipping line. As the carrier's chairman and CEO Rodolphe Saade stated in a news release, the acquisition lets CMA CGM explore services "beyond maritime transport."
When the ocean shipping industry was struggling with overcapacity and moving toward consolidation, carriers sought ways to differentiate their services and stay competitive.
For CMA CGM, the differentiation may be a bridge between sea and land operations. CEVA manages 9 million square meters of warehouse space globally. With a stake in that land space, CMA CGM takes its operations on shore. For shippers, the promise of available warehouse space once a ship docks at port is appealing.