News / CMA CGM joins local feeder line Folk Maritime to launch Saudi shuttle

Photo: VesselFinder

CMA CGM has joined its competitors in striving to keep containers flowing out of a Gulf region buffeted by supply chain disruption in the wake of the Red Sea crisis.

In a trouble-shooting measure, the French liner, in conjunction with local feeder line newcomer Folk Maritime, is to open a shuttle service from Saudi Arabia to connect shipments to the Red Sea.

The partners have phased-in one vessel each to provide a weekly string, branded NRX (North Red Sea Express). Notably, at Jeddah it has two stops: Red Sea Gateway Terminal; and DP World Terminal.

The full itinerary includes calls at Jeddah, Neom, Yanbu, Sokhna and Aqaba.

“It aims to facilitate the growing market and trade needs of the region, whilst simultaneously ensuring the smooth handling of cargo and delivery to local [business] organisations,” noted CMA CGM.

The joint loop is due to launch from Jeddah on 9 April with the 2,100 teu MV Jin Shun, according to the announcement.

Olivier Nivoix, EVP of CMA CGM Group Lines, said: “This service will not only contribute to Saudi Arabia’s expansion of its logistics capabilities in the north Red Sea, but also serve our customers with a better offering in this key region, where CMA CGM has been pioneering direct calls to the port of Neom since March 2023.”

According to available information, Riyadh-based Folk Maritime is headed by Poul Hestbaek, an ex-Hamburg Süd veteran. He said: “This service reinforces our commitment to drive growth and connectivity within the maritime sector.” 

The new feeder operator already has an intra-Saudi service between Jeddah and Neom.

Besides fielding feeder connections, container lines have also tapped inland solutions to mitigate the Red Sea-linked pain. Hapag-Lloyd has announced special road transit arrangements from Jebel Ali, Dammam and Jubail to its ocean shuttle network from Jeddah.

Saudi trade flow is also now on Maersk’s priority list, as it expands its inland infrastructure presence there amid growing cargo volumes. The carrier recently signed a deal with Saudi Railway (SAR) to make container transport between Dammam and Riyadh more efficient by leveraging its worldwide inland logistics operational prowess.

“Drawing upon our decade-long collaboration with SAR, we can swiftly allocate higher capacity and reliable solutions for trade movements affected by the Red Sea situation,” said Maersk.

In 2023, Maersk performed some 16,000 teu on the SAR rail network, which it said represented as much as 55% of its overall inland transport movement on the corridor.

The Danish carrier’s move follows increasing interest from Gulf shippers in opting for land options, rather than using the ocean feeder services that have become substantially costlier due to the Red Sea disruption.

Maersk has also revamped and consolidated its Middle East liner network in recent months. Last month, it opened the ME8 loop, connecting ports across the Gulf to Europe.

In addition, Maersk recently teamed up with Saudi Ports Authority to set up a large integrated logistics park at the port of Jeddah.