CMA CGM may enter more ships under British flag

CMA CGM may enter more ships under British flag

   CMA CGM may enter more containerships under the “tonnage tax” regime of the British flag, but said this will depend on the tonnage tax remaining attractive to shipowners.

   CMA CGM (UK) Ltd., the U.K. subsidiary of the French carrier, has completed an initial commitment to enter 11 ships into the United Kingdom’s tonnage tax regime. The 8,200-TEU “CMA CGM Vivaldi” was the latest CMA CGM-owned ship included in the U.K. regime.

   “Given the extent of CMA CGM’s newbuilding program, there is every possibility that we would seek to expand our presence in the U.K. tonnage tax regime and add vessels to our initial commitment,” said David Halliday, executive chairman of CMA CGM (UK). “But that would be conditional on the U.K. tonnage tax remaining an attractive proposition and continuing to offer both financial and operational efficiencies.”

   The U.K. government introduced the tonnage tax regime Jan. 1, 2000 for qualifying shipping companies, to stimulate investment in U.K. shipping. Under the regime, the tax liability is calculated with reference to the tonnage of the ships in the relevant fleet, rather than actual income earned. CMA CGM (U.K.) entered the tonnage tax last July.