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CMA CGM rows back on windfall tax acceptanceCMA CGM rows back on windfall tax acceptance

An executive at French carrier CMA CGM has criticised the government’s move to levy a windfall tax on businesses.

Nick Savvides, Europe correspondent

October 16, 2024

2 Min Read
CMA CGM vessel in port
File Photo: CMA CGM vessel in portCredit: Marcus Hand

The windfall tax comes along with further tax increases on wealthy households and an array of spending cuts in a bid to plug a €60 billion hole in its budget.

A contribution from some of the profitable companies, including CMA CGM, which could pay around $870 million over a two-year period.

However, the French carrier’s CFO Ramon Fernandez, has apparently contradicted his CEO Rodolphe Saadé, saying, the levy represented a ‘competitive disadvantage’, removing funds that could otherwise be invested in the fleet. Last month Saadé had said, "We'll be there", when asked about the windfall tax.

“If there is a solidarity contribution for companies that have made profits, CMA CGM will take its share,’ Saadé told Reuters in September, but reiterating his opposition to any change to the tonnage tax, which many European carriers have benefitted from on a large scale, particularly since the pandemic.

CMA CGM itself was some $5 billion in debt in 2009 and Rodolphe’s father, the founder and chairman Jaques urged a meeting of French employers: “I call on the competent authorities, banks and public bodies to protect the three big European maritime companies and ensure the survival of the maritime sector in Europe."

In 2020 Paris again supported the carrier with a state guaranteed loan of $1.05 billion as the lockdowns in the early Covid period suggested shipping lines would suffer massive losses. In the event the carriers sailed through the pandemic with collective profits of over $300 billion, with CMA CGM reporting net income of $17.9 billion, $24.88 billion and $3.64 billion in 2021, 2022 and 2023 respectively.

Saadé was not always in favour of the windfall tax, with the billionaire CEO asking a Senate hearing in Paris: “When my freight rates were at $350, where were you?” We weren’t sure at one point if we would get through the week. No one came to speak with us or say something. We had to figure it out.”

Bloomberg reported at the time that in more than two-hours of testimony, Saadé “portrayed CMA CGM as a ‘patriotic’ French champion that has put down deep roots in the country, reinvests profits and hires local workers.”

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About the Author

Nick Savvides

Europe correspondent

Experienced journalist working online, in monthly magazines and daily news coverage. Nick Savvides began his journalistic career working as a freelance from his flat in central London, and has since worked in Athens, while also writing for some major publications including The Observer, The European, Daily Express and Thomson Reuters. 

Most recently Nick joined The Loadstar as the publication’s news editor to develop the profile of the publication, increase its readership and to build a team that will market, sell and report on supply chain issues and container shipping news. 

This was a similar brief to his time at ci-online, the online publication for Containerisation International and Container News. During his time at ci-online Nich developed a team of freelancers and full-time employees increasing its readership substantially. He then moved to International Freighting Weekly, a sister publication, IFW also focused on container shipping, rail and trucking and ports. Both publications were published by Informa. 

Following his spell at Informa Nick joined Reed’s chemical reporting team, ICIS, as the chemical tanker reporter. While at ICIS he also reported on the chemical industry and spent some time on the oil & gas desk. 

Nick has also worked for a time at Lloyd’s Register, which has an energy division, and his role was writing their technical magazine, before again becoming a journalist at The Naval Architect for the Royal Institution of Naval Architects. After eight successful years at RINA, he joined Fairplay, which published a fortnightly magazine and daily news on the website.

Nick's time at Fairplay saw him win the Seahorse Club Journalist of the Year and Feature Writer of the Year 2018 awards.

After Fairplay closed, Nick joined an online US start-up called FreightWaves. 

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