PARIS, May 18 Reuters French shipping firm CMA CGM will take a stake in Air FranceKLM as part of an air cargo partnership, betting on growing demand for flying goods around the world as supply chains remain snarled in the wake of the pandemic.

CMA CGM will take up to 9 of Air FranceKLM, worth about 240 million euros 252 million based on Tuesday39;s closing price, part of a possible capital increase by the airline group for the duration of their partnership that is initially set to run for 10 years, the two companies said.

It will make CMA CGM the fourth biggest shareholder, according to Refinitiv data, and mirrors a similar initiative planned by shipping company MSC, which has teamed up with Germany39;s Lufthansa on a potential bid for Italian airline ITA Airways. 

Air FranceKLM shares rose 3.5 in early trade, making it a top performer on the Paris SBF120 equity index.

Marseillebased CMA CGM, one of the world39;s largest container shipping lines, established an air cargo division last year as part of a push to develop nonmaritime logistics.

Surging profits for ocean shipping, linked to high freight rates since the COVID19 pandemic, have allowed CMA CGM and other shippers to invest in other forms of transport to add resilience to global supply chains and protect against a downturn.

All ocean container carriers are minting money these years and seek to put them all smartly into pushing their services offerings wider, to include more modal, like air, and to get into…