CEO Rodolphe Saade Resists Windfall Tax

The billionaire CEO Rodolphe Saade of the shipping company CMA CGM SA resisted a proposal by lawmakers in France to impose a windfall tax on excessive corporate earnings in order to pay for measures to lessen the impact of inflation on consumers.

“We are putting money on the table and it’s not only charity. We are helping consumers,” said Saade.“What I want is that we stop looking at CMA CGM and we start looking at my competitors.”

As political pressure mounts on one of the largest container carriers in the world over its exceptional earnings, Saade spoke. Shipment costs have increased more than tenfold since the epidemic began because of the strong customer demand.

In order to help pay for measures aimed at safeguarding consumers' purchasing power, lawmakers in France propose a temporary tax of up to 25% on what it terms the "superprofits" of energy and transport goliaths like CMA CGM, TotalEnergies SE, and Engie SA. The closely owned shipping company with headquarters in Marseille saw its net profits more than treble to $7.2 billion in the first quarter despite the plan's lack of government support.

By promising to reduce shipping costs by 500 euros ($510) per container, starting next month, on all imports into France's overseas territories as well as consumer products arriving through ports in France, CMA CGM has given in to pressure from the government to help combat inflation. It also restricted its spot freight prices last year.

“Some are talking about a recession, I would speak more of a soft landing. This will normalize trade and necessarily lower prices of freight,” said Saade.