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CMA CGM reduces Suez sailings due to geopolitical risk

CMA CGM, a shipping?group, announced on Tuesday that it will redirect vessels on 'three of its services' away from the Suez Canal because of global uncertainty. This follows two years of disruptions linked to attacks against vessels.

Shipping companies are considering a return to Asia-Europe trade corridor after vessels were rerouted in 2023 around southern Africa following attacks on the Red Sea by Yemeni Houthi Rebels who claimed that they were motivated because of the war in Gaza and the plight for Palestinians.

The hope for normalized traffic was raised by the ceasefire in Gaza, and the subsequent lull of Houthi attacks.

The Marseille-based company was?prepared to increase its use of this route by sending two ships.

Large container ships

The canal was reopened last month, and regular transits between India and the United States will begin in January.

CMA CGM DOESN’T EXPLAIN 'COMPLEX INTERNATIONAL CONTEXT.'

CMA CGM, however, stated in a customer advisor posted on its website that it will, for?now reroute ships deployed on its French Asia Line 1(FAL1), French Asia Line 3(FAL3), and Mediterranean Club Express services (MEX), via?the Cape of Good Hope (South Africa) citing the "complex and uncertain international environment."

CMA CGM - the world's largest container shipping company - did not elaborate about global uncertainty.

Since December, the unrest in Iran and warnings from U.S. president Donald Trump about possible intervention by Washington have revived concerns about instability in this region. Trump has said in recent days that?violence seems to be subsiding.

Maersk, second largest container line in the world, announced last week that a service would be launched this month to cross the Red Sea. (Reporting and writing by Gus Trompiz, Dominique Vidalon, Inti Landauro, Bernadettebaum)

(source: Reuters)