Cma CGM is understood to have announced yesterday that it had decided to take measures to reduce the cost of shipping containers imported into France and French overseas territories.
The move follows a call from the French government. On Wednesday, French Finance Minister Le Maire pressed Total Energies and shipping companies, the country’s biggest, to make use of some of their fat profits to help consumers fight high inflation.
French Finance Minister Le Maire wants CGM to offer discounts on freight rates for its customers and Total Energies to lower the high prices at the country’s petrol stations.
The French finance minister urged cMA CGM to share its profits to help tame inflation, and cMA announced it would cut sea freight rates
Speaking on French television on Wednesday, Le Maire said: “During the crisis, a few companies profited in sectors like energy or transport… I want them to make me a strong offer so that some of the profits can be returned to the French people.” And added: “If they choose not to do more, we will meet our obligations.”
French inflation rose further in June from the previous month to a record high of 6.5 per cent, according to preliminary official data released on Thursday. The Insee statistics agency said sharp increases in energy and food costs pushed consumer prices up to 6.5 per cent in June from 5.8 per cent in May.
▎ CMA announced to lower sea freight rates
“After consultation with the Ministry of Economy, Finance, Industry and Digital Sovereignty, THE group has decided to take targeted measures to contribute to lower consumer prices for French households,” cMA CGM said in a statement released yesterday.
The French finance minister urged cMA CGM to share its profits to help tame inflation, and cMA announced it would cut sea freight rates
Specific measures include:
▪ 500 euros ($520) less per 40-foot container for all goods imported by major French retailers
CGM will offer its retail customers a discount of €500 per 40-foot container on consumer goods imported through French ports. The measure has meant a nearly 10 per cent reduction in sea freight rates, the company said.
Cma added that the measure must be implemented in conjunction with these brands in order to maximize impact and ensure effective price reduction for consumer goods.
▪ Lower container rates for all goods imported into French overseas territories
For all imports into French overseas territories, the cost of shipping a 40-foot container can be reduced by up to 500 euros. Cma said the drop was equivalent to a 10 to 20 per cent reduction in freight rates, depending on the destination.
The measures will take effect from August 1, 2022, and will be valid for one year, CMA said in a statement. It called on retail chains to pass on lower prices.