CMA CGM’s CEVA to operate four EPS’ LNG dual-fuel hybrid ships

CEVA Logistics 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.

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.

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.

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 firm’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 company is helping to finance, and the construction of the ship started in January 2023.

The new vessels will enable CEVA to offer its own, controlled capacity to automotive customers 

The company 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.

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 addition to its finished vehicle logistics solutions, CEVA supports global automotive manufacturers and many global automotive parts suppliers with other logistics solutions, including inbound to manufacturing and aftermarket services.

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