CMA CGM Partners with Google Using AI to “Reboot” Shipping and Logistics

CMA CGM plans to incorporate AI into all aspects of its operations (CMA CGM)

PUBLISHED JUL 18, 2024 3:58 PM BY THE MARITIME EXECUTIVE

 

 

With corporations all working to understand the power of Artificial Intelligence (AI) and how to harness it, French shipping and logistics giant CMA CGM reports it plans to “revolutionize shipping” through a strategic partnership with Google. Through the partnership, they look to accelerate the integration of AI across all of CMA CGM’s operations worldwide. 

CMA CGM says they will work with Google to develop and implement tools that will “help empower its employees’ decision making.” Every program and tool across several key workflows will be developed to assist in the decision-making processes.

“This collaboration aligns with our digital roadmap and investments, marking a crucial step in our transformation strategy. Together with Google, we will lead the digital revolution in shipping, logistics, and media, optimize our processes, and enhance our competitive edge,” said Rodolphe Saadé, Chairman and CEO of CMA CGM.

Through the integration of AI into its systems, CMA CGM says it will actively seek to optimize vessel routes, container handling, and inventory management to ensure efficient and timely delivery of goods while minimizing costs and carbon footprints.

“This comprehensive collaboration aims to revolutionize shipping by enhancing efficiency, responsiveness, and adaptability to market fluctuations and disruptions, resulting in faster and more responsive customer service. As part of the partnership,” they write in announcing the plan.

CEVA Logistics, the logistics arm of CMA CGM, will pioneer the data-driven future of logistics, focusing first on warehouse smart management aimed at better operating its 10.3 million square meters of warehouse space. The smart management tool, built on Google technology, CMA CGM says will allow CEVA Logistics to better anticipate and plan its operations thanks to an enhanced volume and demand forecasting.

“By combining CMA CGM’s deep expertise in shipping and logistics with Google's AI tools and secure infrastructure we can help CMA CGM digitally transform its own operations and those of its customers,” said Sundar Pichai, CEO of Google and its parent company Alphabet. “This partnership is a prime example of how AI can assist employees, improve outcomes for customers, and revolutionize industries."

According to CMA CGM, the collaboration is part of its overall strategy to transform its business through AI innovation. Over time they anticipate that the AI solutions will benefit all employees including extending into the group’s newly launched media operations which include French newspapers. The agreement with Google follows other moves such as CMA CGM’s investment in Mistral AI, PoolSide, and Dataiku, as well as the launch of the open science lab, Kyutai.

The move into AI comes as CMA CGM is moving to rapidly expand operations including the acquisition of Bolloré Logistics, the launch of its branded air freight operations, and expansion into vehicle transports and passenger ferries. The group has approximately 620 vessels with a capacity of more than 3.75 million TEU. In 2023, it carried a total of 21.8 million TEU and with orders reported this week has more than 80 vessels planned with a total capacity of nearly 1 million TEU. CMA CGM is poised to become the world’s second largest container carrier potentially surpassing Maersk by 2026.