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The Danish government wanted Maersk to reduce freight rates to ease inflation, but it was rejected

Time:2022-08-05 Publisher:Kevin Num:2418

Under the background of the unprecedented severe inflation situation in Europe, some European countries began to exert political pressure on their liner companies.

They do so mainly in the hope that these enterprises can help the government and jointly shoulder the responsibility of fighting inflation. Among them, Dafei and Maersk have been seriously affected.

Previously, CMA CGM was first notified by the French government. Under the pressure of the government, CMA CGM reduced the freight of import and export enterprises.

It announced that it would reduce the import freight by $500. After that, CMA CGM announced that it would further reduce the freight and expand the scope of application.

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

(Related reading: CMA CGM announced lower freight rates to ease French economic inflation)

Maersk was also under political pressure from the Danish government a few days ago after CMA CGM. It is required to provide freight discounts for domestic import and export enterprises to support the economic development of the country.

However, Maersk rejected the request of the Danish government.

Maersk clearly responded: "we believe in an open market economy. We believe that all customers are important, no matter what industry they are in or from which country. Therefore, we do not consider providing freight discounts to customers."

CMA CGM's concession is in contrast to Maersk's tough line, but some insiders also said that CMA CGM's price reduction is a "pre emptive" measure to reduce the possibility of the French government imposing a "windfall profit tax".

"Windfall profits tax" is generally levied on the excessive profits made by an industry, and its purpose is usually to meet the financial needs of the state.

Some experts pointed out that the situation faced by CMA CGM and Maersk is the epitome of large-scale inflation in Europe.

Data showed that in June this year, the inflation rate of 19 countries in the euro zone soared to 8.6%, the highest level since records began in 1997.

The data released by Eurostat on July 1 showed that the inflation rate of euro zone countries in June increased by 0.6 percentage points compared with that in May. 

Overall, the rise in energy prices is the main reason for the record inflation rate.

According to preliminary data released by INSEE, the inflation rate in France has continued to rise this year, rising from 5.8% in June to 6.1% in July, the highest level since July 1985.

According to Statistics Denmark, the country's annual inflation rate rose to 7.4% in May from 6.7% a month ago, the highest level since May 1983.

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