Logistics

CMA CGM Returns to Full Suez Canal Loop on INDAMEX Service

CMA CGM Returns to Full Suez Canal Loop on INDAMEX Service

Sedat Onat
Detailed summary of CMA CGM's decision to return fully to Suez for both fronthaul and backhaul on the INDAMEX line, covering impacts on transit times, capacity reduction, market pricing, and sector implications in the Red Sea risk environment

CMA CGM announced a significant strategic shift at the end of 2025 on its INDAMEX service: the line will now operate a full-loop transit via the Suez Canal in both fronthaul (India/Pakistan → US East Coast) and backhaul (US East Coast → India/Pakistan) directions. The decision stands out as a notable "early return" step compared to the cautious stance major carriers have maintained following security issues in the Red Sea due to drone threats since late 2023.


The new route's first full-loop voyage will be handled by CMA CGM VERDI. The vessel departs Karachi for New York on 15 January. According to eeSea by Xeneta data, the Suez route reduces INDAMEX's total transit time by two weeks to 77 days. This creates significant time savings for both carriers and shippers.


Previous Situation: Piecemeal Suez Returns

Throughout 2024–2025, CMA CGM conducted only case-by-case Suez transits, particularly limited test voyages on the backhaul leg. Xeneta Chief Analyst Peter Sand notes that this new decision marks a critical inflection point as the "first full east–west loop via Suez".


Four additional vessels on the INDAMEX rotation (APL OREGON, CMA CGM PASSION, APL LE HAVRE, CMA CGM MAUPASSANT) will conduct eastbound Suez transits. Meanwhile, other CMA CGM fleet vessels (JULES VERNE, APL CHANGI, GALAPAGOS, GRACE BAY, APL MERLION, KIMBERLEY) are observed transiting eastbound; however, only MERLION and KIMBERLEY appear in the proforma schedule.


Industry Comparison: CMA CGM Ahead, Other Carriers on Hold

Major carriers Hapag-Lloyd and Maersk have not announced comprehensive return schedules via the Red Sea. ZIM is awaiting completion of insurance approval processes. This picture shows CMA CGM making a faster return decision than its competitors.


However, Sand emphasizes this does not constitute a broad-based industry return. In November 2025, only 120 container vessels transited Suez, compared to 583 in October 2023. This gap demonstrates the security environment remains fragile and the majority of carriers have limited risk appetite.


Capacity Impact: Two Vessels Exiting Rotation

The Suez return does more than shorten transit times; it also makes the INDAMEX rotation more efficient. CMA CGM announced it can remove two vessels from the rotation with the Suez loop. Peter Sand interprets this development as a potential bellwether for sector-wide capacity impact.


Spot rates have already experienced sharp declines in 2025:

  • Far East → US East Coast fronthaul rates fell 57% year-on-year,

  • Far East → North Europe rates declined 53%.

If CMA CGM's move is followed by more carriers, added capacity could push spot rates further down and expose some operators to loss-making territory.


Strategic Assessment

CMA CGM's move carries weight on three levels:

  1. Operational: Shorter transit times make INDAMEX more competitive on the Asia–US East Coast corridor.

  2. Capacity: Removing two vessels from the rotation helps reduce costs.

  3. Geopolitical: In an environment where Red Sea security remains fragile, CMA CGM is launching a controlled yet bold return strategy.

The company's move signals the start of a "gradual risk acceptance" process in global shipping networks; however, Sand's warnings suggest this is not yet a full normalization step.


Key Takeaways:

  • INDAMEX now implements full-loop Suez routing in both directions.

  • First voyage: CMA CGM VERDI, 15 January, Karachi → New York.

  • Transit time shortens by two weeks (77 days).

  • Two vessels removed from rotation; capacity efficiency improves.

  • Suez return is not yet an industry-wide trend; only 120 transits occurred in November 2025.

  • Spot rates: FE–USEC –57%, FE–NEU –53%; further capacity additions could depress prices further.

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News Link: https://en.portnews.ru/news/385495/

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Author: SedatOnat.com

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