CMA CGM to cut rates for French retailers to fight inflation
FRENCH shipping giant CMA CGM will lower freight rates by about 10 per cent from August 1 for large retailers in France to support government steps to curb inflation, reports Reuters.
The Marseille-based company, the world’s third biggest box carrier after MSC and Maersk, was singled out by French Finance Minister Bruno Le Maire along with energy giant TotalEnergies as companies that should use bumper profits to help households cope with high inflation.
In response, CMA CGM said it will from August 1 reduce shipping rates by EUR500 (US$520) per FEU for consumer products imported by major retail chains to mainland France, said the company statement.
Faced with surging inflation, due in part to high energy prices, governments in countries like Britain have announced windfall taxes on oil and gas firms.
TotalEnergies said it has increased a summer discount on French fuel prices by two cents.
Shipping firms like CMA CGM, which posted a net profit of $17.9 billion for 2021, have benefitted from high freight rates as the Covid crisis has disrupted supply chains and left shipping capacity stretched.