CMA CGM Continues Avoiding Red Sea Amid Security Concerns

CMA CGM has announced it will continue to avoid the Red Sea despite considering the region more stable following the recent ceasefire between Israel and Hamas. The company cited ongoing threats from Iran-backed Houthi forces, which have conducted over 100 attacks on commercial vessels since November 2023, as a primary reason for its decision. Shipping executives remain cautious, opting for alternative routes, primarily the Cape of Good Hope, to ensure safety. CMA CGM described the improved stability as a 'positive but fragile sign' but emphasized that safety is their top priority. While the company may adjust its policy based on security developments, it currently prioritizes avoiding the Red Sea. This ongoing situation affects nearly 15% of global seaborne trade, causing significant operational shifts in the shipping industry.