French shipowner CMA CGM launches direct service from China to Oakland

Houston — French container shipping firm CMA CGM announced on Feb. 2 the first direct trans-Pacific service from Asia to the Port of Oakland, California, bypassing the congested Port of Los Angeles amid heavy US import volumes.

The new service will connect the Chinese ports of Shanghai and Yantian with the US ports of Oakland and Seattle. It will replace the Seapriority Express launched in November 2020 that called on Ningbo, Yantian and Los Angeles.

Ship wait times at the Ports of Los Angeles and neighboring Long Beach have extended to 10-14 days, as lockdowns during the coronavirus pandemic boosted US consumer spending on imported goods. The two busiest US container ports handled a combined 5.16 million twenty-foot equivalent units, or TEUs, in the fourth-quarter 2020, up by 23% from the same period in 2019.

"Oakland is an ideal, reliable alternative to the Port of Los Angeles/Long Beach for West Coast customers importing goods due to its easy access for existing California shippers, immediate berth availability and fast rail connections into Chicago, Memphis, Dallas and Kansas City," CMA CGM said.

The company said it increased capacity in the US by 39% between the first and second half of 2020 as trans-Pacific volumes surged.

Container volumes at the Port of Oakland have already risen as congestion at Southern California ports drives shippers and shipowners to seek alternatives. Total container imports at Oakland in December increased by 12% from the previous month and ship waiting times at the port have extended to 3-6 days.

Strong demand for eastbound trans-Pacific shipments increased Platts Container Rate 13 -- North Asia to West Coast North America -- to $4,200/FEU on Feb. 2 from $3,150/FEU six months ago on Aug. 3.