LOGISTICS: Carrier CMA CGM to resume Red Sea transits on a case-by-case basis

Adam Yanelli

29-Feb-2024

HOUSTON (ICIS)–Global container shipping major CMA CGM Group will begin transiting the Red Sea on a case-by-case basis as it continues to closely monitor the situation, the company said in an advisory to customers.

The company said it will make assessments for each vessel prior to transits, so routing choices cannot be anticipated or communicated.

All other vessels will continue to be rerouted around the Cape of Good Hope.

Houthi attacks on commercial vessels in the Red Sea began in November 2023, forcing carriers to begin diverting away from the Suez Canal in December.

Maersk and CMA CGM Group were the last two major carriers to completely cease transits through the Suez.

The longer routes put upward pressure on freight rates because of increased fuel costs and tightened capacity with fewer available ships.

Rates surged but have begun to ease, although they remain elevated.

Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets.

Some liquid chemicals are also shipped on container ships using isotanks.

Visit the ICIS Logistics: impact on chemical and energy markets Topic Page.

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