CMA CGM to cut rates on import cargo into France from August 1st

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Following an appeal from the French governing authorities, shipping giant CMA CGM has decided to implement some measures aimed at alleviating the country's cost of living crisis.

CMA CGM to cut rates on import cargo into France from August 1st
Photo: Philippe Alès, CC BY-SA 4.0, via Wikimedia Commons

As of August 1st, the company will take €500 off per 40-foot container for all import cargo into France through French ports. The same is two for France’s overseas territories.

In a statement published on its website in French only, the CMA CGM said:

“The CMA CGM Group has decided to implement targeted measures to contribute to the effort to moderate consumer prices for French households in consultation with the Ministry of the Economy, Finance and Industrial and Digital Sovereignty, which will ensure an impact on the prices of products purchased by the French.”

The measure will apply for a 12 period.

Commenting on the move on LinkedIn, renowned shipping expert Lars Jensen said there are still unanswered questions:

“It is unclear how exactly the rate reduction will be implemented. Will it be a 500 Euro discount compared to the prevailing spot rates to neighboring ports in for example Belgium and the Netherlands? A 500 Euro reduction in agreed contract rates? Will this apply equally to CIF and FOB customers, or do the French importers need to be fully in control of the freight to be eligible for the discount?”

Jensen added that it was “very critical” to see of the discount is “measured against the prevailing spot market at the time, or whether the discount will simply vanish as part of an overall rate decline – much as the rate freeze in September is technically correct, but the market itself has declined since and there has not been an increase to “freeze”.”


Photo: Philippe Alès, CC BY-SA 4.0, via Wikimedia Commons

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