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CMA CGM Announces Conditional Resumption of Red Sea Transits

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CMA CGM Announces Conditional Resumption of Red Sea Transits

by Zyrene D.
02/27/2024
in Security & Risk

CMA CGM has announced that it will resume transits through the Red Sea on a case-by-case basis, as per a statement released on Wednesday. This decision follows a comprehensive review of the current conditions in the Southern Area of the Red Sea and the evolving situation. The company stated that it will evaluate each vessel individually before deciding on the transit, which means routing decisions will be made on an as-needed basis and cannot be pre-determined or publicly shared. In response to inquiries, CMA CGM, via an email to Supply Chain Dive, opted not to offer additional details, emphasizing the safety of its crew and vessels as a priority.

The move by the France-based shipping giant comes at a time when the maritime industry is addressing security challenges in the Red Sea region. In December, leading shipping companies including Maersk, ONE Line, MSC, and Hapag-Lloyd adjusted their routes, opting for the Cape of Good Hope instead of the Red Sea for certain transits, attributing the change to attacks attributed to Houthi rebels. These reroutings have led to the introduction of additional surcharges due to increased transit times and heightened risks.

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The situation has attracted attention from various stakeholders, resulting in hearings by the House of Representatives’ Coast Guard and Maritime Transportation subcommittee and the Federal Maritime Commission. These hearings aimed to evaluate the impact of the continued assaults on commercial shipping activities in the Red Sea.

Discover supply chain news insights on The Supply Chain Report. Enhance your international trade knowledge at ADAMftd.com with free tools.

#RedSeaTransitNews #MaritimeSecurityNews #ShippingIndustryNews #CMA_CGM_NewsUpdate #GlobalShippingHeadlines

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