Last week, CMA CGM announced changes to its India America Express (INDAMEX) route, which it plans to resume using the Suez Canal to cross the Red Sea. However, possibly due to pressure from the client, a few weeks later, CMA CGM changed its decision again, reverting the route to a route around Africa.
CMA CGM has announced that it will re-launch its services across the Red Sea. According to the latest sailing plan on the company's website, CMA CGM has announced that the route will be adjusted to pass through the Suez Canal.
According to CMA CGM's announcement, the new route was originally scheduled to take effect in mid-November, with the first ship to sail along the Suez route, "CMA CGM Pelleas," scheduled to depart from Port Qasim in Pakistan on November 13 for the new loop voyage. As part of the plan, the INDAMEX route will resume two-way connections between Damietta and Jeddah, and add a port stop at Tanger Med on the westbound route.
In addition, the adjustment plan significantly optimizes the voyage cycle, reducing the overall cycle of the route to 11 weeks, with fixed weekly departures. A total of 11 container ships with capacity between 8,500 and 9,950 TEUs were deployed in the following port order: Port Qasim, Nhava Sheva, Mundra, Jeddah, Damietta, Tangier Port (westbound only), New York, Norfolk, Savannah, Charleston, then return to Damietta and Jeddah, Finally back to where we started, Port Qasim. With this re-routing, CMA CGM will better meet the needs of shipping between the Indian subcontinent and the East Coast of the United States, leveraging the Suez Canal's convenient shipping lanes across the Red Sea region, improving route access and operational efficiency.
The decision of CMA CGM has been widely concerned by the industry.
However, according to the latest information, the company has now quickly adjusted its flight schedule, returning the INDAMEX route to the route around Africa.
According to the latest operational schedule provided by CMA CGM, the latest voyage has no longer called on (and passed through) DAMIETTA, Jeddah and Suez Canal ports. As follows:
CMA CGM said in an earlier statement on its website that the resumption of the Red Sea route will help improve the flexibility and adaptability of its global service network, further consolidating its trade chain between the Indian subcontinent and the East Coast of the United States.
Another industry source said that the reason why CMA CGM has made such changes is mainly because of pressure from customers.
Jason Cook, CEO of Ardent Gloabal Logitics, said: "I have recently spoken to several customers regarding CMA CGM's Indamex route via the Suez Canal. Customers say that if the route goes back to the Suez Canal, they will not be able to continue to use the service because their insurance policies do not cover such routes and the containers [cargo] cannot be insured."
Lar Jessen, a well-known shipping analyst, also said that CMA CGM may have been under pressure from customers to make the adjustment.
John M., founder and CEO of CEP Group, believes that due to the weak response of the Biden administration and the possible instability of the future Trump administration, especially in the case of the escalation of the conflict between Israel and Iran, the current route through the Red Sea and Suez is highly uncertain.
Another industry source said that the impasse in the negotiations between Israel and the Palestinians may also be an important reason for the immediate adjustment change of the CMA CGM.
Qatar's Foreign Ministry said in a statement on Tuesday (local time) that its efforts to mediate between the Palestinian Islamist Resistance Movement (Hamas) and Israel have stalled and that Qatar will resume mediation only when both sides show willingness and seriousness to end the brutal war.
According to Reuters, this is the biggest setback to the Gaza ceasefire negotiations since the start of the current round of Gaza conflict. The British "Guardian" said that efforts to end the war in Gaza were already struggling, and the move by the Qatari side was the latest blow. The Qatari foreign Ministry also denied reports that the United States had asked Qatar to expel Hamas officials.
Some analysts believe that the announcement by Qatar to suspend its mediation of the Gaza ceasefire is at least partly intended to pressure Israel and Hamas to reach an agreement.
In any case, the rapid adjustment of CMA CGM in recent times shows that shipping companies need to be more adaptable and agile in the face of changes in market demand and challenges in the operating environment.