Shipping group CMA CGM scales back Suez sailings on geopolitical risks

Shipping group CMA CGM will re-reroute vessels on three of its services away from the Suez Canal due to global uncertainties, it said on Tuesday, reining in plans to expand transits after two years of disruption linked to attacks on vessels.

Shipping companies have been weighing a return to the critical Asia-Europe trade corridor after vessels were rerouted around southern Africa in late 2023 following attacks in the Red Sea by Yemeni Houthi rebels, who claimed they were motivated by the war in Gaza and the plight of Palestinians.

A ceasefire in Gaza and subsequent lull in Houthi attacks had raised hopes for normalized traffic.

After making limited transits using naval escorts, the Marseille-based firm had been poised to expand its use of the route, sending two large container ships through the canal last month while planning regular transits from January for an India-U.S. service.

CMA CGM DOESN'T ELABORATE ON 'COMPLEX INTERNATIONAL CONTEXT'

However, in a customer advisory posted on its website, CMA CGM said it would, for now, reroute vessels deployed on its French Asia Line 1 (FAL 1), French Asia Line 3 (FAL3) and Mediterranean Club Express (MEX) services via the Cape of Good Hope in southern Africa, citing "the complex and uncertain international context."

CMA CGM, the world's third-largest container shipping line, did not elaborate on the global uncertainties.

Since December, unrest in Iran and warnings by U.S. President Donald Trump of possible intervention by Washington have revived worries about instability in the region, though Trump has in recent days said violence appears to be subsiding.

MaerskMAERSKb.CO, the world's second-largest container line, said last week that one of its services would cross the Red Sea and Suez Canal from this month.

-Gus Trompiz/Reuters