CMA CGM reduces Suez Canal transits amid regional uncertainty
Note: AI technology was used to generate this article’s audio.
- French shipping giant CMA CGM cuts routes through Suez Canal amid “complex international context.”
- Some global shippers resume limited transit, but risks and costs remain high.
French shipping group CMA CGM has announced it will reduce the number of its vessels passing through the Suez Canal, redirecting ships on three of its shipping lines to alternative routes. The company cited a “complex and uncertain international context” for the decision.
Shift in shipping routes
Based in Marseille, CMA CGM said the move limits its plans to expand regular canal transit, following two years of global shipping disruptions triggered by attacks on vessels in the Red Sea in late 2023.
Read more: European airlines avoid Iranian and Iraqi airspace amid regional tensions
At the time, many global shippers rerouted via the Cape of Good Hope around South Africa after the attacks, which were carried out by Houthi forces in Yemen claiming support for Palestinians during 'Israel’s' war on Gaza. The detours raised shipping costs and disrupted supply chains.
Despite hopes that the ceasefire in Gaza could restore steady traffic through the canal connecting Asia and Europe, CMA CGM said in a customer notice posted online that it would change routes for ships on three lines, without specifying the precise risks behind the move.
Other shipping firms diverge
While CMA CGM retrenches, Danish shipping giant Maersk last week announced it would resume one of its lines through the Red Sea and Suez Canal this month, showing varying risk assessments among global carriers. German company Hapag-Lloyd said in January it would not adjust operations in the Red Sea at this time.
Analysts at Lloyd’s List note that while Red Sea attacks have declined since 2024, shipping companies continue to act cautiously, with insurance costs and operational risks not yet back to normal levels.
Impact on the Suez Canal
CMA CGM’s move comes amid renewed regional tensions involving Iran, alongside US warnings of potential intervention, despite President Donald Trump’s recent comments that conflict intensity is easing.
Read more: No airline rerouting affecting Jordan as regional airspace tensions persist
Suez Canal Authority head Osama Rabie told a local channel in December that the canal lost about $12 billion in 2024 and 2025 due to wartime disruptions and diverted shipping lines. Some carriers have resumed “limited, trial” transit through the canal, but full regular operations have yet to return.
The decision underscores how geopolitical instability continues to shape global shipping patterns, even as some carriers cautiously re-engage with strategic maritime routes.
