4 November 2024 – 08:00 – Economy
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The French shipping company CMA CGM, one of the largest container carriers in the world, is considering moving part of its activities to Morocco.
The reason is a new tax that the French government wants to introduce for large shipping companies. This “special contribution” would cost CMA CGM hundreds of millions of euros annually.
Also read: French group to operate Nador West Med
With this tax measure, the French government wants companies that have made large profits during the corona pandemic to help close the budget deficit. CMA CGM is the only French company that meets the criteria and fears the tax will be extended beyond 2026. The shipping company calls the measure unfair and is concerned about the consequences for its competitive position.
CMA CGM already has strong ties with Morocco. The company recently entered into a joint venture with Marsa Maroc, the Moroccan port operator, for the development of a container terminal in the Nador West Med port. CMA CGM has been active in Morocco since 1983 and employs 1,800 people. CMA CGM ships visit all major Moroccan ports.
Also read: CMA CGM increases price for transport to Morocco
The group, founded in 1978, is the third largest container carrier in the world. CMA CGM has more than 29,000 employees and a fleet of almost 540 vessels. If the tax burden in France becomes too high, it may be attractive for CMA CGM to move part of its activities to Morocco.
CMA CGM Shocks France: Will It Set Sail for Morocco?
4 November 2024 – 08:00
Ah, the French! They’ve brought us magnifique cuisine, iconic art, and now, a tax that might just send one of their biggest shipping companies sailing away! CMA CGM, a colossal name in the world of container shipping, is contemplating a move to Morocco thanks to a shiny new tax that French politicians have dusted off just for them. Isn’t that just typical? “Oh, you didn’t make enough money during the pandemic? Here’s a tax that’ll do the trick!”
This impending “special contribution,” as they call it, could cost CMA CGM hundreds of millions of euros annually. That’s like taking a sailboat and converting it into a luxury yacht—with a hefty price tag you didn’t see coming! And let’s be honest, who can blame them for looking at Morocco as the next best port destination? I mean, they’ve been in Morocco since ’83! It’s practically home away from home for them, except with slightly better weather and less of a tax burden—though who doesn’t enjoy a good tax break with a side of mint tea?
It seems the French government is all about asking the big winners of the pandemic to help fill the budget deficit. You know, those companies that raked in cash while the rest of us hoarded toilet paper? CMA CGM, being the only French company to make the cut, isn’t too pleased about having the taxman knocking on their door. They’ve called the measure ‘unfair,’ which is about as controversial as a mime in a quiet café.
What’s more, there’s a genuine fear that this tax could extend beyond 2026. Now that’s the kind of ticking clock that would make even the calmest captain anxious—shifting activities to Morocco might seem like the ship-shaped lifeboat they never knew they needed!
But before you pack your bags for Morocco, remember this: CMA CGM isn’t just kicking the tires on this idea; they’ve recently embarked on a joint venture with Marsa Maroc, the Moroccan port operator, to develop a container terminal in the Nador West Med port. So, clearly, they’ve been eyeing this move for quite some time. Can you blame them? They already have over 1,800 employees in Morocco—their potential future home. With over 29,000 employees and a fleet that could practically carry the entire French Riviera, shifting gears might just be the savvy business decision they need to dodge that tax bullet.
The company’s slogan might be something like, “From the Seine to the Sahara,” if they really want to sell it. After all, they have ships visiting all the major Moroccan ports—like a French tourist, but with a lot more cargo and a much better excuse to be there!
So, what’s next? Will we see CMA CGM become more than just a nautical giant that makes the French government sweat? Or will they stick around and bear the burden of tax season from Hell? Whatever happens, rest assured, we’ll keep our ears to the ground—or better yet, our eyes on the ocean!
4 November 2024 – 08:00 – Economy
The French shipping giant CMA CGM, recognized as one of the largest container carriers globally, is actively exploring the possibility of shifting a portion of its operations to Morocco.
The impetus for this potential move stems from a proposed tax initiative by the French government aimed at imposing a “special contribution” on large shipping companies, which could impose a burden of hundreds of millions of euros annually on CMA CGM.
With this tax measure, the French government seeks to ensure that companies benefiting from substantial profits during the coronavirus pandemic contribute to efforts in addressing the national budget deficit. CMA CGM stands out as the only French company that fits the government’s criteria, provoking concerns regarding the possibility of the tax extending beyond its current implementation, anticipated to be in effect until 2026. The shipping company deems this tax measure inequitable and is wary of its potential impact on its competitive stance in the industry.
CMA CGM’s established connections with Morocco include a recent strategic partnership with Marsa Maroc, the national port operator, aimed at developing a cutting-edge container terminal at Nador West Med. With a presence in Morocco dating back to 1983, the company employs approximately 1,800 people and operates services to all major Moroccan ports.
The group, founded in 1978, is recognized as the third largest container carrier worldwide. With a workforce exceeding 29,000 employees and a formidable fleet comprising almost 540 vessels, CMA CGM is weighing the benefits of relocating some of its operations to Morocco should the tax landscape in France become unfeasible.
**Interview on CMA CGM’s Possible Move to Morocco**
**Interviewer:** Thank you for joining us today! With the recent news about CMA CGM potentially relocating part of its operations to Morocco due to a new tax from the French government, can you shed some light on the implications of this decision?
**Alex Reed:** Thank you for having me! It’s a significant development indeed. CMA CGM, which is one of the largest container carriers globally, is facing a hefty new tax called the “special contribution.” This could cost them hundreds of millions of euros annually. It’s understandable why they’d look for more favorable tax environments, especially since Morocco could offer them exactly that.
**Interviewer:** They’ve been involved in Morocco for quite some time, right? How might that influence their decision?
**Alex Reed:** Absolutely. CMA CGM has had a strong presence in Morocco since 1983 and has built valuable relationships there, including a recent joint venture with Marsa Maroc for a new container terminal. This long history makes the transition smoother if they decide to expand their operations there, as they already have infrastructure and a workforce in place.
**Interviewer:** The French government’s reasoning is to tax big earners from the pandemic to help with the budget deficit. Do you think this will change the landscape for large companies in France?
**Alex Reed:** Indeed, this move could send shockwaves throughout the industry. Many companies will be watching closely to see how CMA CGM responds. If they successfully shift operations to Morocco, it might encourage other firms to rethink their tax strategies and consider offshore options. This could lead to a significant loss of jobs and tax revenue in France.
**Interviewer:** There’s speculation that this tax could extend beyond 2026. How does that uncertainty affect companies like CMA CGM?
**Alex Reed:** It creates a climate of unease. Companies thrive on predictability, and an uncertain tax landscape can hinder long-term planning. If they sense that their operational costs will continue to rise due to taxes in France, they’ll be more inclined to make strategic shifts to maintain competitiveness.
**Interviewer:** Lastly, why is Morocco seen as a viable alternative for CMA CGM?
**Alex Reed:** Besides the potential for lower taxes, Morocco presents a strategic geographical advantage due to its access to key shipping lanes and a developing infrastructure that supports expanded operations. The great weather doesn’t hurt either! All these aspects make Morocco an attractive option as CMA CGM navigates these turbulent waters.
**Interviewer:** Thank you for your insights! It will be fascinating to see how this situation unfolds in the coming months.
**Alex Reed:** My pleasure! It’s a critical moment for CMA CGM and the shipping industry and it’ll be interesting to observe the ripple effects.
