CMA CGM, ALGERIAN STATE CARRIER FORM U.S./MED BULK POOL

CMA CGM, ALGERIAN STATE CARRIER FORM U.S./MED BULK POOL    Marseilles-based CMA CGM and Algerian state carrier Compagnie Nationale Algerienne de Navigation are planning to form a pool to carry bulk and container shipments between the United States and the Mediterranean.
   The “CMA CGM/CNAN Space Charter, Pooling and Cooperative Working Agreement,” filed with the U.S. Federal Maritime Commission authorizes the two shipping lines to exchange space for carriage of bulk cargoes on vessels they intend to time charter and operate in the trade between the U.S. East and Gulf Coasts from Eastport, Maine, to Brownsville, Texas, and countries bordering the Mediterranean and Black Seas plus Portugal and the Atlantic coast of Morocco. Initially, CMA CGM will provide one vessel, and Compagnie Nationale Algerienne de Navigation will provide two vessels.
   Under the proposed cooperative agreement, the carriers also intend to place containers on the vessels if space is available.
   Regarding the bulk cargoes, the shipping lines will be pooling revenue, defined as total freight revenues less variable costs.
   CMA CGM and Compagnie Nationale Algerienne de Navigation also intend to discuss rates and conditions in the trade, and service contracts.
   The management of CMA CGM has recently expressed an interest in acquiring the Algerian state carrier.