Shipping: lower freight rates announced by CMA CGM

The French shipowner CMA CGM indicated on Friday 22 July that he was goingreduce its freight rates by 750 euros per 40 ft containerto the mainland and overseas, instead of the 500 euros originally planned for the end of June. Initially reserved for 14 retail brands, this measure has been extended to all its customers in metropolitan France and will enter into forceFrom 1andAugust for a period of one year. Onedecrease of 100 euros per container 40 feetis also announced forall French exports. The loss of profits for the carrier is estimated at approximately EUR 300 million, 2.5 times the cost of the reductions announced in June.

These efforts have been made to support the purchasing power of French households and the economy, while the shipowner is in line with elected officials and parliamentarians who for several months have allowed the threat of a tax for companies with record profits thanks to the crisis to float.

Surfing over the surge in freight prices and the disruption of global logistics chains (cf.Maritime transport: the companies under attack from all sides), the shipping giant had recorded in 2021 a net profit of$17.9 billion(EUR 16.6 billion), more than ten times that of 2020, already expressed in billions. CMA CGM thus became the most profitable French company in that year. At the beginning of June, the group already posted a net profit of$7.2 billion(EUR 6.7 billion) for the first quarter of 2022 alone.

To go further...

• Sales Administration (SDA) Subcontracting Export
• Import/export flow management (air & maritime)
• Diagnosis of international logistics flows

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