News / French windfall tax will saddle CMA CGM with 'competitive disadvantage'

Ramon Fernandez, CFO CMA CGM

Remarks by CMA CGM’s CFO Ramon Fernandez appear to contradict a statement by CEO Rodolph Saade a month ago that it was ready to participate in a French windfall tax scheme, claiming it would make the carrier uncompetitive.

The €800m ($875m) windfall tax, which would be levied over two years, is part of a move by the French government to plug a hole in the budget, which could soon amount to 6% of GDP, according to Reuters.

Last week, the government unveiled its 2025 budget, with €60bn of spending cuts and corresponding tax hikes on the wealthy and big companies.

Mr Fernandez told newspaper Les Echos last week the tax would set his company back around €800m over two years, representing a “competitive disadvantage” for CMA CGM.

His comments suggest €800m was more than the third-largest liner company was expecting, following remarks last month by its leadership.

“We’ll be there,” CEO Rodolph Saade had said toward the end of last month, adding: “If there is a solidarity contribution for companies that have made profits, CMA CGM will take its share.”

At around the same time, CMA CGM was spending $2bn to buy a controlling share in Santos Brazil, the country’s largest port.

The Loadstar has yet to receive a response from CMA CGM, which saw a 6.8% increase in cargo in Q2 24, compared with the same period in 2023, but was not able to convert this into higher revenues, which were down 0.8%. Group earnings increased, but net income was down $670m, which CMA CGM said was thanks to investment in an AI research fund and a decarbonisation fund for the French shipping industry.

Meanwhile, last month, French Prime Minister Michel Barnier appointed Antoine Armand as minister of the economy, finance and industrial and digital sovereignty, and Laurent Saint Martin as DG of business France.