CMA CGM To Reduce Shipping Rates

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The container transportation and shipping firm CMA CGM is set to cut down shipping costs on imports into France and French overseas territories say Ship Technology.

  • Shipping cost set to cut down cost on imports into France.
  • The associated with this is the container transport and shipping firm CMA CGM.
  • The shipping and oil industry will be sharing their profits to control inflation.

Finances

The French Government’s call for shipping and oil sectors to share their profits to tame inflation leads to a reduction in shipping rates. This followed French Government’s call for shipping and oil industries to share their profits to control inflation. French Finance Minister Bruno Le Maire has requested that both CMA CGM and TotalEnergy use a portion of their profits to help customers bear high inflation. In response, CMA CGM has agreed to cut down shipping rates by €500 per 40ft container for consumer goods imported to mainland France.

Cut down on Cost

This move might lead to a freight rate reduction of around 10% for major retail customers. The company will also decrease its rates by €500 per 40ft container for imports to French overseas territories. Based on the destination, this constitutes a cut of between 10% and 20%. Beginning 1st August, this discount will be applicable for a year. The shipping firm has urged retailers to pass these savings on to consumers. Separately, CMA CGM and Engie agreed to co-invest in the Salamander project in Northern France.

Location

The site will be located at the port of Le Havre. It is expected to become the first industrial and commercial unit for second-generation biomethane production. Production is scheduled to commence in 2026. This will be with an annual capacity of 11,000t of second-generation biomethane. The site is anticipated to generate up to 200,000tpa of renewable gas by 2028 to meet the requirements. The firms will finalise their investment decision on the project later in the year.

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Source: Ship Technology

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