Shipping company CMA CGM to cut prices for French retailers in fight against inflation

A shipping container belonging to CMA CGM crosses the Suez Canal in Ismailia, Egypt October 5, 2021. REUTERS/Mohamed Abd El Ghany

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PARIS, June 30 (Reuters) – Shipping company CMA CGM [RIC:RIC:CMACG.UL] will cut container shipping rates by about 10% for large retailers in France to support government measures to curb inflation, he said on Thursday.

The group, one of the world’s largest container shipping companies, was named this week by French Finance Minister Bruno Le Maire along with energy giant TotalEnergies (TTEF.PA) among companies that should use windfall profits to help households cope with high inflation. Read more

CMA CGM will reduce shipping rates from August 1 by 500 euros ($520) per 40-foot container for consumer products imported by large retail chains to mainland France, he said in a statement. communicated.

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The measure, which will be applied for a year, represents a nearly 10% drop in shipping rates, CMA CGM said, calling on retail chains to pass the saving on to store prices.

The shipping group also announced a drop of 500 euros in the prices of 40-foot containers for all imports to the DOM-TOMs, i.e. a drop in prices of 10 to 20% depending on the destination.

In the face of soaring inflation, partly due to high energy prices, governments in countries like Britain have announced windfall taxes on oil and gas companies.

France has so far urged companies to act while leaving the threat of a windfall tax on the table.

TotalEnergies announced on Thursday that it had increased a summer discount on French fuel prices by 2 cents. Read more

Transport companies like CMA CGM, which recorded a net profit of $17.9 billion for 2021, benefited from high freight rates as the COVID-19 pandemic disrupted supply chains and left the capacity to stretched transport.

($1 = 0.9614 euros)

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Reporting by Gus Trompiz and Tassilo Hummel, editing by Sybille de La Hamaide and Emelia Sithole-Matarise

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