CMA CGM Suspends Transit Of Red Sea

Bloomberg reporting that French shipping group CMA CGM has suspended transit by its vessels of the Bab Al-Mandab strait, in and out of the Red Sea, after a period of CMA CGM ships trafficking the waterway under French navy escort.

• The reported suspension follow a statement from the Houthi rebels in Yemen yesterday claiming to have struck a CMA CGM ship. A spokesperson for the company denied the reports: “We understand that the vessel briefly altered course to assist in the medevac of a crew member who had fallen ill. The claims of an attack on the vessel are not correct.”
• Shipping news outlet Splash reported yesterday that CMA CGM staff had send a letter to management stating: “The emotional and psychological impact on the employees and their families due to these policies cannot be overstated. Many of our colleagues have expressed deep concerns for their safety, and the minimal hazard pay offered is seen as dismissive of the real dangers they face.”
• The IMF reported on Wednesday that shipping through the Red Sea has dropped by nearly one-third this year. Jihad Azour at the IMF told reporters: "The level of uncertainty is extremely high, and the developments will determine the extent of change and shift in trade patterns in terms of volume but also in terms of sustainability. Are we on the verge of major change in trade routes, or is it temporary because of the increase in costs and the deterioration of the security costs?"