French Cargo Giant “CMA CGM” Resumes Services via Suez Canal by Mid-June

French shipping giant CMA CGM remains the only major global operator that has resumed its services via the Suez Canal.

As of mid-June, CMA CGM plans to restart the Med Express (MEDEX) service via the Suez Canal, with the support of the French Navy.

While the Asia-Europe trade line continues to grow, it is not the fastest growing, over the past 12 months, and services linked to Latin America have recorded the greatest growth, with the size of the fleet operating in Latin American services now quite similar to the capacity of all ships serving the Middle East and the Indian subcontinent.

In just two years, carriers have added 2.26 million TEUs equivalent to 20 feet of additional capacity on the Asia-Europe trade corridor, bringing the total fleet on this route to 7.8 million TEUs. 

With 24.4% of the world's fleet now trading on this route, which is the largest shipping lane for the shipping fleet, according to Alvaliner data and two years ago, the ratio was 20.8%.

When container ships change their route from the Suez Canal to cross the Cape of Good Hope, the trade route between Asia and Europe becomes longer by about 3,500 to 4,500 nautical miles (6,500 to 8,300 kilometers), depending on the ports of origin and destination, and this transfer usually adds 10 to 14 days to transit times, depending on the speed of the ship.

Although US President Donald Trump last month said that more than 17 months later, the Red Sea shipping crisis, triggered by the Houthis, is coming to an end, most shipping companies questioned in recent quarterly results have insisted that it is still too early to resume Red Sea crossings.

For example, Maersk CEO Vincent Klerk said it would be "irresponsible" to resume Red Sea crossings based on an unclear ceasefire agreement, warning that the area remains too volatile to be returned safely.