News / Regional operators add Red Sea services – but liners' return may be looming

Photo: VesselFinder

Regional shipping lines are expanding their Red Sea services as some CMA CGM vessels continue to “test” Suez Canal transits ahead of a potential return to the waterway by the major liners.

This is prompting concerns of an unwinding of excess container shipping capacity.

Global Feeder Shipping, Regional Container Line, and TS Lines on Friday launch a joint Red Sea China service to connect Shanghai, Qingdao, Nansha, Shekou, Jeddah, Sokhna, Aqaba, Jeddah, and Shanghai.

The service will turn in eight weeks and will initially deploy four 2,500-3,500 teu ships, starting with the 3,524 teu SSF Dream from Shanghai.

X-Press Feeders has already added the China-Red Sea Xpress (CRX) service by joining China United Lines’ Red Sea Express Service (REX).

The CRX/REX service turns in seven to eight weeks using seven 1,500 to 2,800 teu vessels – CUL operating six ships and X-Press one.

The regional carriers are tapping into the vacuum left by mainline operators avoiding Red Sea Houthi assaults – but, as The Loadstar is reporting today, the Yemen-based, Iran-backed militia has announced the conclusion of its siege of the waterway.

Meanwhile, CMA CGM is deploying the 16,022 teu CMA CGM Jules Verne on a round-trip via the Suez Canal this week, the first ship on the Ocean Alliance MED2 service to return to the Suez route since January 2024.

The ship will transit the canal westbound on Friday, returning on 13 December, saving two weeks on the previous diversion around the Cape of Good Hope, and will add an ad hoc call at Beirut.

Linerlytica noted that CMA CGM’s first venture through the Red Sea had involved two ships on its FAL1 service to return empty containers to Asia after congestion in European ports.

The consultancy said: “CMA CGM continues to test a return to the Suez route….which could erode the fragile consensus among the main carriers to avoid the Red Sea.”

Clarksons noted that the detours around the Cape of Good Hope had tied up 11% of container shipping capacity, and any reduction of this would impact the charter and freight markets.