French container shipping company CMA CGM has announced it will reroute vessels on three of its services via the Cape of Good Hope, citing a “complex and uncertain international context.”

The action limits the company’s plans to expand Suez Canal transits after two years of disruptions caused by attacks on ships in the Red Sea.

The change affects CMA CGM’s French Asia Line 1 (FAL 1), French Asia Line 3 (FAL 3) and Mediterranean Club Express (MEX) services.

Until now, the company had tested limited Suez Canal transits using naval escorts, sending two large container ships through the canal last month and planning regular transits from January for an India-U.S. service.

Shipping companies had been considering a return to the Asia-Europe trade corridor after vessels were rerouted around southern Africa in late 2023 following attacks by Yemeni Houthi rebels.

The rebels said the attacks were linked to the war in Gaza and the situation of Palestinians. A ceasefire and a pause in Houthi attacks raised hopes that canal traffic would return to normal.

CMA CGM did not provide details on the global uncertainties but said it is closely monitoring the situation and will review it regularly.

Since December, unrest in Iran and warnings of possible U.S. intervention have raised regional stability concerns.

Meanwhile, Maersk confirmed last week that one of its services will resume transits through the Red Sea and Suez Canal, linking the Middle East and India with the U.S. East Coast.

Industry experts say that the Suez Canal route is crucial for shipping, affecting capacity, freight rates, transit times and fuel use.

Tools like the Red Sea Diversion Tracker can help stakeholders plan around these risks, according to Drewry’s Philip Damas.

References: Reuters, shippingtelegraph