The French container liner CMA CGM Group is tentatively resuming transits through the Red Sea despite continued attacks from Yemen’s Houthis on the region.
The liner major is going to attempt some transits “on case-by-case basis”, as it was revealed by the group.
“The CMA CGM Group has reevaluated the situation in the Southern Area of the Red Sea and the evolving conditions allow us to resume transit on a case-by-case basis,” the group wrote in a customer advisory released on February 28.
CMA CGM wrote to customers, “The situation is being closely assessed for each vessel before each transit, routing choices, therefore cannot be anticipated or communicated.
“Otherwise, all other vessels are rerouted via the Cape of Good Hope.”
The Marseille-based shipping liner CMA CGM Group posted a financial loss as the shipping industry struggles with the conflict in the Red Sea and the specter of overcapacity.
A statement released February 23 painted a subdued outlook “shaped by sluggish global economic growth.”
“Our results are down as we expected,” CMA CGM Rodolphe Saadé, chairman and chief executive commented last Friday.
CMA CGM follows rivals A.P. Moller-Maersk, one of the biggest container lines, and Hapag-Lloyd, in outlining difficult prospects in the near term for the notoriously cyclical industry, partly based on sluggish economic growth.
