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CMA CGM Chief says it's 'unwise to assume' that Hormuz would return to pre-war conditions

The head of French shipping group CMA CGM stated on Tuesday that it would be "unwise to assume" that the situation in the Strait of Hormuz will return to the way it was prior to the Iran War.

CMA CGM is the third largest container line in the world. Its vessels are stranded within the Gulf, where the conflict has closed it off. The waterway carries about a fifth the global supply of oil and LNG.

Rodolphe Saade, the CEO and Chairman of CMA CGM, told a French parliament hearing that "even if a peace solution is implemented in coming weeks there's no guarantee?there won't a crisis later and we can't become prisoners to Hormuz."

He said: "I will not be fixated by the idea that?the Strait of Hormuz will reopen?and?everything will return?to what it was," "Unfortunately, it seems unwise to act in such a way."

Saade said that CMA CGM could continue to offer alternative routes to clients as it adapts itself to a volatile geopolitical environment.

CMA CGM, based in Marseille, has also rushed to bypass the Hormuz Strait?to get to the Gulf. It hauls cargo via road and rail, from ports further away.

Saade, a family member who controls CMA CGM, stated that the company was sending a third of the number of containers into the Gulf as compared to before the war.

Ramon Fernandez, the Chief Financial Officer of the group, said that the alternative routes would cost the group an additional $300 million during the first half of the year.

CMA CGM was stranded with 14 ships in the Gulf when the Iran War began. Two of the ships have left, but one was hit last month by an attack in which eight seafarers were injured.

(source: Reuters)