CMA CGM announces further reduction in sea freight

Following the announcement at the end of last month to reduce the sea freight by 500 euros, CMA CGM recently issued another announcement, saying that it will reduce the freight and expand the scope of application.

Specific measures include:

> 750 euros per 40ft container freight reduction for all shipments imported from Asia by all customers in France;

> A reduction of 750 euros per 40ft container for all shipments destined for French overseas territories;

> New export measures: 100 euros less freight per 40ft container for all French exports;

> Availability: The original plan was to offer shipping discounts to 14 major retailers in France, but this has now been extended to all customers in France, including large groups, SMEs and small businesses.

The CMA informed that the measures would mean a drop in freight rates of up to 25%. The announcement said these fee reductions will take effect on August 1 for a period of one year and have been determined in consultation with the Ministry of Economy and discussed with group customers and certain business federations.

CMA CGM said: “It is crucial that these price reductions are passed on to the prices of products destined for the final consumer, and the various departments of the Ministry of Commerce ensure this. In the French overseas territories, the state will be able to protect the quality/price (BQP) Consumer prices of products (food, personal hygiene, cleaning products, small household equipment) are monitored under the plan."

French Economy Minister Bruno Le Maire said: "CMA CGM made an initial gesture (a 500 euro discount per case). I told them it was not enough and they should do more. They have listened." The new move is understood to come amid calls for a windfall tax on "super" profits. While the French government has said it does not support such actions, it has failed to secure an absolute majority in the French parliament. Many opposition MPs, especially those on the far left and right, have called for a windfall profits tax, and the debate on the issue continues.

It is understood that the "windfall profit tax" is a tax levied on the excessive profits of a certain industry, and its purpose is usually to meet the financial needs of the state. According to industry analysts, the further price cut by CMA CGM is a "pre-emptive" move to reduce the possibility of the French government levying a "windfall profit tax" on it.

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