Seatrade-Maritime: Is CMA CGM taking a Red Sea gamble?

The increasingly complex circumstances of the wider Middle East conflict are taking a surprising twist with at least one major European carrier returning to the shortest route between Asia and Europe via the Red Sea.

Since the conflict in Gaza began in autumn 2023 the threat posed by the Houthi movement to shipping transiting the Bab al-Mandeb, at the southern end of the Red Sea, was sufficient to send ships thousands of miles further south around the Cape of Good Hope.

When the conflict in Gaza apparently ended, it was briefly thought that vessel operators could return to transiting Suez and the Red Sea but when the war was extended to the Arabian Gulf that expectation was seemingly quashed.

Lars Jensen, CEO of consultancy Vespucci Maritime, noted yesterday, on day 834 of the Red Sea crisis and day 53 of the Strait of Hormuz blockade, that CMA CGM is quietly returning to Suez.

“CMA CGM continue to gradually normalise their usage of Red Sea/Suez transits. 8,500 teu CMA CGM Tosca, which is enroute from Asia to Europe on the new Ocean Rise Express, is presently heading for a Suez routing and is also shown as such in their schedules,” said Jensen.

According to Alphaliner, the carrier is “testing” the water for a broader return to the Suez Canal route, and with other carriers refusing to risk the transit it could bring a significant competitive advantage to CMA CGM.

Four of CMA CGM’s services have continued to transit the region, perhaps considered safe due to the French operator’s Lebanese connection.

In addition to these four services, the Ocean Alliance’s MEX, Asia – Mediterranean service is being rerouted and the 16,020 teu CMA CGM Jules Verne successfully completed an eastbound transit earlier this month, while the similarly sized CMA CGM Marco Polo, will transit Suez westbound this week. The newly delivered 23,872 teu CMA CGM Grand Pal, on its maiden voyage, will also take the shorter route.

“No other global carriers have reverted back to Suez-routing at this time, whereas niche carriers continue to regularly cross the Bab el-Mandeb Strait and in some occasions continue up through Suez as they have also done over the past two years,” said Jensen.