Major shipping carrier CMA CGM has declared its INDAMEX service will now include transits via the Suez Canal on its voyages between India/Pakistan and the US East Coast. This decision marks a significant move towards reintroducing container ships to the Red Sea region.
The first ship to complete a full loop via the Suez Canal will be the CMA CGM VERDI, departing from Karachi for New York on 15 January. Data from Xeneta's eeSea indicates that choosing the Suez route over the Cape of Good Hope shortens the full loop transit time for this service by two weeks, bringing the total down to 77 days.
CMA CGM’s strategic route adjustment
Sand noted that CMA CGM has tested with Suez Canal transits on set trips, mainly on the backhaul journeys
Peter Sand, Chief Analyst at the ocean freight intelligence platform Xeneta, commented on the development: “We are still some way from a large-scale 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.”
Sand noted that CMA CGM has experimented with Suez Canal transits on selected trips, mainly on the backhaul journeys to Asia when vessels carry less cargo. This structural change signifies that the Suez Canal will become part of the regular service schedule, rather than an occasional diversion.
Vessels on the INDAMEX route
In addition to the CMA CGM VERDI, other vessels including the APL OREGON, CMA CGM PASSION, APL LE HAVRE, and CMA CGM MAUPASSANT will undertake eastbound transits via the Suez Canal before the new rotation is fully implemented. Several CMA CGM ships, such as CMA CGM JULES VERNE and APL MERLION will also traverse this route, though only the latter two are designated as official passages.
Other major shippers like Hapag-Lloyd and Maersk have not scheduled a large-scale return to the Red Sea, and ZIM is awaiting insurance clearance for such operations.
Potential risks and market implications
Sand cautions that carriers will continue to evaluate risks, considering the Houthi's ability
Despite this announcement, Sand warns that the change does not necessarily indicate an immediate surge in container shipping through the Red Sea, in light of the recent reduction from 583 to 120 ships transiting the Suez Canal between October 2023 and November 2025.
This decline coincided with increased attacks on merchant vessels in the region by the Houthi Militia. Sand cautions that carriers will continue to evaluate risks, considering the Houthi's ability and intent to target ships as security remains tenuous.
Impact on shipping capacity and rates
The adjusted transit time via the Suez Canal on the CMA CGM INDAMEX service means a reduction of two vessels from the schedule, hinting at potential impacts on shipping capacity and freight rates should larger-scale routing changes occur.
The ocean container shipping market is already experiencing overcapacity, with spot rates for Far East fronthauls to the US East Coast and North Europe declining by 57% and 53% respectively over the past year.
“If more carriers adopt this route, the market could be inundated with capacity, potentially causing a steep decline in freight rates and pushing carriers towards loss-making scenarios,” Sand explains, acknowledging that carriers are preparing for this possibility.
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 large-scale 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.
CMA CGM’s announcement
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.”
Vessels on the INDAMEX service
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.
Escalation of attacks on merchant ships
Other major carriers, including Hapag-Lloyd and Maersk, have not announced a firm timeline for a large-scale 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.
Container shipping capacity and freight rates
Sand 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 large-scale return would have on container shipping capacity and freight rates.
Ocean container shipping market
Sand said: “There is already overcapacity of supply in the ocean container shipping market and spot rates are falling even without a large-scale 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.”
