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CMA CGM announced lower freight rates to ease French economic inflation

Time:2022-07-27 Publisher:Kevin Num:3557

During the epidemic, shipping companies can be said to be the biggest beneficiaries of the shipping industry. The high ocean freight makes their profits continue to expand.

But, now the global economy has declined, and some governments require these shipping companies to give up part of their interests to alleviate the economic pressure.

Last month, the French shipping giant CMA CGM succumbed to the pressure of the French government and announced a $500 reduction in import rates.

French finance minister Bruno le Maire asked CMA and other companies that make huge profits to provide help to alleviate economic difficulties on June 29.

After that, CMA CGM recently issued another announcement, saying that it would further reduce the freight and expand the scope of application.

It was decided to reduce the freight of all imports from Asia to the mainland and the overseas territories of France by 750 Euros per 40 foot container.

CMA said: "originally designed to provide relief to 14 major retailers in France, it has now been extended to all its customers in France, including various small and medium-sized enterprises."

"In addition, for all French exports, 100 euros will be reduced for every 40 foot container. This reduction will support the competitiveness of Companies in exports, especially small and medium-sized companies that promote French expertise globally."

These Measures mean that freight rates can be reduced by up to 25%.

CMA CGM added that the discount will take effect on August 1 for a period of one year and has been negotiated with the Ministry of economy and discussed with the group's customers.

"It is essential to transfer these price reductions to the product prices for end consumers, and the Department of the ministry can ensure this."

CMA CGM said that these measures were taken after other measures taken more than a year ago, especially the freezing of "floating" freight rates since September.

It has also allocated special capacity to small and medium-sized enterprises on its ships in the most tense markets (Europe, North America) at "negotiation rates that can usually be used for larger volume commitments".

Bruno le Maire, the French Minister of economy, said, "Dafei group has set a good example (a discount of 500 euros per box). I told them that this is not enough, they should do more. They have implemented it."

GLA hereby reminds freight forwarders and shippers to pay attention to the latest shipping information in time to avoid economic losses caused by delayed delivery of goods.

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