Pressure from customers has apparently caused French mainline operator CMA CGM to u-turn on plans to operate its INDAMEX (Indian Subcontinent-US East Coast) service through the Suez Canal, just weeks after announcing it.
It said it would drop the lengthy detour round the Cape of Good Hope in favour of using the Red Sea transit, and the reversal is likely due to cargo insurers refusing to cover this while the threat of Houthi attacks persists.
INDAMEX launched in August with nine 9,000-10,000 teu ships calling Port Qasim, Nhava Sheva, Mundra, New York, Norfolk, Savannah, Charleston and Port Qasim, going round the Cape of Good Hope.
But this month CMA CGM unveiled a new schedule, indicating it would redirect INDAMEX via the Suez Canal, using 11 8,500-9,950 teu ships, the CMA CGM Pelleas set to be the first on the route mid-month.
CMA CGM has not responded to The Loadstar’s request for comment. But Vespucci Maritime’s Lars Jensen said in a LinkedIn post: “It appears this rapid change in perspective might have been caused by customer pushback.”
Linerlytica analyst Tan Hua Joo noted that CMA CGM had been the sole exception among Asia-Europe liner service providers rerouting their services around the Cape, as the French line retains a single Asia-Mediterranean service still using the Suez Canal.
Mr Tan said: “CMA CGM is already using the Suez route for its BEX2 service, so already has arrangements in place. The backtracking [on INDAMEX] would be more likely due to customer pressure as many of them would not have insurance cover.”
According to Alphaliner, Houthi rebels do not target ships on the BEX2 service as they carry containers to and from Lebanon.