Resumption of Major Shipping Line Through the Red Sea Signals Expected Return of Container Vessels

NYN | Reports and Analyses 

In a move considered an important indicator of gradually restored confidence in the Red Sea corridor, the French shipping giant CMA CGM announced the resumption of a major shipping line linking India, Pakistan, and the U.S. East Coast via the Red Sea and the Suez Canal, following months of suspended operations due to security tensions.

Return of “Indamex” After a Long Halt

The company explained that the first voyage of the reinstated service—known as Indamex—will depart on 15 Januaryaboard the vessel Verdi from Karachi Port in Pakistan, heading toward New York, USA.

The return to the traditional route is expected to shorten transit time by a full two weeks compared to the alternative pathway around the Cape of Good Hope, restoring vitality to one of the world’s most important shipping routes.

A Sign of a Wider Comeback for Container Ships

The shipping-market intelligence platform Xeneta described the decision as “a clear signal of movement toward a full resumption of container-ship transits through Bab al-Mandab and the Suez Canal,” especially in light of the ongoing ceasefire in Gaza and the commitment by Sana’a forces to halt maritime attacks.

Xeneta’s chief analyst, Peter Sand, said the CMA CGM move represents “a structural shift” in the service model, as every voyage will now be required to transit the Suez Canal—unlike previous limited services that relied on case-by-case security assessments.

Noticeable Increase in Maritime Traffic

This return coincides with a remarkable uptick in traffic through Bab al-Mandab and the Suez Canal, which in November reached its highest level since January 2024, according to data from the British publication Lloyd’s List, indicating a relative stabilization of maritime supply chains.

Expected Impacts on Freight Rates

Despite overall optimism, experts warn that the return of major shipping lines to the traditional route could increase excess capacity in the container-shipping market. Sand noted that spot freight rates are already declining, and that the entry of more companies could lead to “a sharp drop” in global prices.

Companies Still Hesitant

Despite this development, some companies—especially those linked to the Israeli entity, such as Maersk and ZIM—remain hesitant to fully return to the Red Sea route.

ZIM is reportedly requiring approval from marine-insurance providers, while the data-analysis service Kpler indicates that risk premiums are unlikely to fall anytime soon due to “security fragility and the possibility of renewed conflict.”

Releasing Vessels and Boosting Capacity

Resuming the Suez route is expected to free up two vessels that had been operating on the longer Cape of Good Hope route, thereby boosting capacity in the global shipping market, which is already suffering from oversupply.

CMA CGM’s move is seen as a turning point that may prompt other shipping companies to make similar decisions in the coming weeks, paving the way for an almost complete return of maritime trade through one of the world’s most critical corridors.

Source: Xeneta