CMA CGM, Wan Hai & Others Continue Red Sea Transits Despite Crisis
Publish Time: 2025-06-06 Origin: Site
1. Suez Canal’s 15% Discount Initiative
Duration: May 15 – August 12, 2025.
Target: Container ships ≥130,000 net tons (empty or laden).
Goal: Revive traffic after Q4 2024 revenue plunged 63% YoY to $880M.
2. Carriers Defying Red Sea Risks
| Carrier | Strategy | Active Routes |
|---|---|---|
| CMA CGM | - French naval escorts - Lebanese heritage (founder Jacques Saadé) | BEX2, MED5 (Asia-Mediterranean) |
| Wan Hai | - Singapore-flagged ships - No Israel calls - Biweekly Jeddah/Aqaba | Ad-hoc Red Sea sailings |
| COSCO | - Chinese crew/flag - Proactive Houthi communications | Red Sea-East Mediterranean |
| CU Lines | - Chinese vessels only - Explicit "no-Israel" declarations | Red Sea niche routes |
3. Geopolitical Safeguards
CMA CGM’s edge: Immunity linked to Lebanon port concessions (Beirut Terminal).
Wan Hai’s record: Zero incidents since 2023 via neutral flagging and routing.
4. Canal Revenue Crisis
2023–2024: Earnings crashed from $9.4B to $3.5B, forcing Egypt to seek IMF aid.
Alternate routes: 33% of global container fleet still diverting via Cape of Good Hope.
Industry Insights
CMA CGM’s MED5/BEX2: 12 vessels operating normally; alliance partners share slots.
Wan Hai’s model: "On-demand" Red Sea calls every 2 weeks (Jeddah/Aqaba focus).
COSCO/CU Lines: Stress 100% Chinese crews and AIS transparency to avoid targeting.
Quote: "Our Singapore-flagged ships with no Israel ties face zero threats."
— Wan Hai CEO Hsieh Fu-Lung
Outlook
Short-term: Discounts may lure back ULCVs (24,000+ TEU ships).
Long-term: If Houthi attacks escalate, even "immune" carriers could divert.
Recommendation: Shippers using these carriers should confirm war risk surcharges (currently $500–1,500/TEU).
For real-time Red Sea transit updates, track EE Sea’s liner database.
Data Sources: SCA, eeSea, carrier disclosures.
Note: Egyptian authorities may extend discounts if revenue fails to recover.