Major carrier CMA CGM has announced its INDAMEX service will transit Suez Canal on fronthaul and backhaul voyages between India/Pakistan and US East Coast in a notable step towards a largescale return of container ships to the Red Sea region.

The first vessel to complete a full service loop via Suez Canal will be CMA CGM VERDI, sailing from Karachi to New York on 15 January. eeSea by Xeneta data shows voyages via Suez Canal rather than Cape of Good Hope reduces full loop transit time on this service by two weeks, down to 77 days.

Peter Sand, Chief Analyst at Xeneta – the ocean freight intelligence platform – said: “We are still some way from a largescale return of container shipping to the Red Sea, but CMA CGM’s announcement of a full east-west loop via Suez is certainly a notable step in the right direction.

“We have seen carriers, particularly CMA CGM, testing the water recently by transiting Suez Canal on a select few voyages, particularly backhaul legs to Asia when there is less cargo onboard.

“Until now, these transits via Suez Canal have been on a case-by-case basis, diverting voyages originally scheduled to sail around Cape of Good Hope. CMA CGM’s announcement this week is important because it is a structural change with a service proforma to transit Suez Canal on every sailing.”

Four more vessels on the INDAMEX service (APL OREGON, CMA CGM PASSION, APL LE HAVRE, CMA CGM MAUPASSANT) will make eastbound transits via Suez before the new rotation takes full effect.

There are also eastbound transits of Suez Canal by other CMA CGM vessels, including CMA CGM JULES VERNE, APL CHANGI, CMA CGM GALAPAGOS, CMA CGM GRACE BAY, APL MERLION and CMA CGM KIMBERLEY, however only the latter two are ‘official’ or proforma passages.

Other major carriers, including Hapag-Lloyd and Maersk, have not announced a firm timeline for a largescale Red Sea return, while ZIM has stated it is waiting for insurance approval.

Sand has warned the latest announcement by CMA CGM does not automatically mean an imminent large-scale return of container shipping to the Red Sea. The number of container ships transiting Suez Canal in November 2025 was 120, down from 583 in October 2023, shortly before the escalation of attacks on merchant ships in the region by Houthi Militia.

He said: “Carriers will be carrying out risk assessments and the security situation remains fragile. The assessment will look at the Houthi’s ability, opportunity and intent to attack ships. We know they have the ability, but carriers will want assurance over their intent, especially because the opportunity will increase as more ships begin sailing through the region.”

The shorter transit time on a full loop via Suez on the CMA CGM INDAMEX means two ships will be dropped from the service – a pre-cursor for the impact a largescale return would have on container shipping capacity and freight rates.

Sand said: “There is already overcapacity of supply in the ocean container shipping market and spot rates are falling even without a largescale return to the Red Sea. Average spot rates on Far East fronthauls to US East Coast and North Europe are down 57% and 53% respectively compared to a year ago.

“If we see other carriers follow CMA CGM, then capacity will flood the market and we could see freight rates fall hard. This could push carriers further towards loss-making territory, but they will be fully aware of this outlook and ready to respond.”

Source: Xeneta