CMA CGM: Continue to circumnavigate the Suez Canal
French container shipping company Dafei Shipping announced that it will adjust the routes of its three shipping routes to sail through Cape of Good Hope, citing the "complex and uncertain international situation" as the basis for this move.
This move has restricted the company's plans to expand the Suez Canal route, as shipping disruptions were caused by ongoing ship attacks in the Red Sea region over the past two years.
This route adjustment involves CMA CGM's French Asia Route 1 (FAL 1), French Asia Route 3 (FAL 3), and Mediterranean Club Express (MEX) services.
Previously, the company had attempted to use the Suez Canal route to a limited extent under naval escort. Last month, it dispatched two large container ships through the canal and plans to open regular flights from India to the United States starting from January next year.
The shipping company had considered restarting the Asia Europe trade route after being forced to detour around southern African waters by the end of 2023 due to attacks by Houthi militants in Yemen.
The Houthis claimed that the attack was related to the Gaza War and the situation in Palestine. The ceasefire agreement and the suspension of attacks by the Houthis have reignited hopes for the restoration of normal canal shipping.
Dafei Shipping did not disclose specific details of global uncertainty, but stated that it is closely monitoring the situation and will conduct regular assessments.
Since December last year, the volatile situation in Iran and warnings of possible US intervention have intensified regional stability concerns.
Meanwhile, Maersk confirmed last week that one of its routes will resume navigation through the Red Sea and the Suez Canal, connecting the Middle East, India, and the east coast of the United States.
Industry experts point out that the Suez Canal route is crucial for shipping, as its condition directly affects capacity, freight rates, travel time, and fuel consumption.