French shipping giant CMA CGM faces extended disruptions in global trade as Chairman and CEO Rodolphe Saade acknowledges challenges due to vessel diversions around southern Africa, prompted by security concerns in the Red Sea and Gulf of Aden.
French maritime leader CMA CGM encounters prolonged disturbances in worldwide commerce as Chairman and CEO Rodolphe Saade recognises difficulties arising from the rerouting of vessels around southern Africa. This redirection is a response to heightened security apprehensions in the Red Sea and Gulf of Aden.
CMA CGM has temporarily suspended most Red Sea voyages but continues selective shipments under French navy escort. The company, responsible for 12 percent of global trade via the Suez Canal, grapples with the impact of Houthi militants’ attacks since November. Rival Maersk warns of potential disruptions into the second half of the year.
Despite the hurdles, CMA CGM reports a better-than-expected start to 2024. The Red Sea crisis temporarily stabilises freight rates and absorbs excess capacity, leading to a doubling of container rates on select Asia-Europe routes in January. Saade cautions about increased challenges in the latter half of the year with additional vessel capacity.
Regarding Panama Canal disruptions due to drought, CMA CGM adopts a distinct strategy, avoiding land transfers employed by Maersk. Instead, the company lightens loads through port calls in Mexico, with recent rainfall offering relief.
