Nearly a year after French shipping giant CMA CGM pledged to invest $20 billion in the United States maritime sector, progress on the ambitious commitment appears limited, raising questions about the pace and scope of the promised investments.
The announcement, made during a White House meeting last March, was welcomed by President Donald Trump, who linked the move to renewed confidence in the US economy. The Marseille-based, family-owned CMA CGM — the world’s third-largest container shipping line — had outlined plans to invest over four years across ports, logistics, shipping and air cargo.
However, industry observers note that only a fraction of the pledged amount has materialised so far.
Shipbuilding Plans Face Cost Barriers
A key component of the investment was expected to include orders for American-built container vessels and the addition of around 20 ships to the US-flagged fleet. Yet, CMA CGM has not announced any orders with US shipyards.
One of the primary challenges is cost. Building a commercial vessel in the United States can cost up to five times more than in Asia. For instance, three container ships currently under construction at Hanwha’s Philadelphia shipyard are priced at approximately $330 million each, compared to roughly $75 million for similar vessels built in Asia.
High operational expenses are also slowing the expansion of CMA CGM’s US-flagged fleet. American mariners command higher wages, and insurance costs are steeper, making profitability difficult without expanded government subsidies. Since March, the company has added only one vessel to its US-flagged fleet.
Port Investments Move Forward
While shipbuilding commitments remain uncertain, CMA CGM has advanced investments in US port infrastructure — an area seen as offering stronger financial returns.
The company confirmed that it has committed approximately $1 billion toward expanding terminal capacity at the Port of New York and New Jersey and the Port of Los Angeles. At Bayonne, New Jersey, a $486 million expansion project has begun, while plans are underway to invest around $500 million to expand operations in Los Angeles.
Port authorities have described CMA CGM as a collaborative and committed partner, calling the projects significant and much-needed upgrades to capacity.
Additionally, CMA CGM announced a joint venture with US-based investment firm Stonepeak to pursue further port development projects, potentially supporting up to $3.6 billion in global terminal investments with a particular focus on the United States. However, the company has yet to announce specific new US projects under this partnership.
Broader Industry Context
CMA CGM’s pledge stood out in scale, as rival ocean carriers such as Maersk and MSC have not announced comparable multibillion-dollar US investment commitments over the past year.
The broader US maritime sector remains in need of revitalisation. In an executive order issued in April, President Trump called for a comprehensive maritime action plan to bolster domestic shipbuilding and counter China’s growing dominance in commercial shipping. However, the plan has yet to be fully implemented, and Congress has not advanced legislation to expand subsidies seen as critical to encouraging domestic vessel construction.
Meanwhile, South Korean conglomerate Hanwha has announced a $5 billion plan to expand the Philadelphia shipyard it acquired, signaling continued international interest in the US maritime sector.
Investment Under Watch
CMA CGM’s investment pledge followed discussions within the Trump administration about imposing penalties on Chinese-built and Chinese-owned vessels — a move that could have affected the company, which operates a significant number of Chinese-built ships and maintains alliances with Chinese carriers.
The White House continues to include CMA CGM’s $20 billion commitment in its broader tally of foreign investment promises, emphasizing expectations that partners will honour their pledges.
With three years remaining in the four-year timeline outlined by CMA CGM, industry stakeholders will be watching closely to see whether the company accelerates its investments and moves forward with the more capital-intensive elements of its commitment.
