CMA CGM Retreats from Return to Suez-Red Sea Corridor for Three Routes

 

In a brief statement issued to customers, French carrier CMA CGM announced that it would be resuming rerouting vessels via the Cape of Good Hope. The surprise announcement came just weeks after the carrier reported it was implementing a return for more of its routes and the first regularly scheduled voyages through the Suez Canal and Red Sea since late 2023.

The company made only a brief reference to a “complex and uncertain international context,” while saying it would continue to constantly and closely monitor its operations. The decision impacts two of its “French Asia Line” routes connecting ports in Northern Europe with China and Asia, and its “Mediterranean Club Express” between Asia and the Mediterranean. Another route to India appears not to be affected and will continue to transit the Suez Canal and Red Sea.

The company did not provide any additional context for the decision to reroute vessels just as the industry was taking steps toward restoring routes through the corridor. CMA CGM had maintained a limited number of transits throughout the conflict in the region using warship escorts from the EU Operation Aspides. Most of its prime liner routes were going around Africa until the decision to restore a handful of routes this month. Maersk last week announced it too planned to resume transits of the corridor on a route between India and the U.S. East Coast.

 

CMA CGM has still be using Operation Aspides warship escorts through the Red Sea (EU Operation Aspides)

 

The Maritime Executive highlighted last week that the leader of the Houthi movement had made new threats. They were against Israeli positions in Somaliland and not shipping, but signaled the potential for additional regional instability. Tensions also remain high between the U.S. and Iran, with the U.S. repositioning the Abraham Lincoln Carrier Group from Asia to the region as Iran tries to stop internal protests against the financial policies and practices of the repressive regime.

“There is also irony in CMA CGM – previously the most proactive major carrier in returning to the Red Sea - taking a backward step just a few days after Maersk - generally the most risk-averse carrier - announcing its MECL service will begin transiting the Suez Canal again. It typifies the unpredictability shippers must deal with,” said Destine Ozuygur, Senior Market Analyst at Xeneta, a logistics market data firm.

Ozuygur highlights that shippers seek predictability in their supply chains. He said CMA CGM risks “undermining confidence in schedule reliability” with the sudden reversal of policy. Xentea notes that the passage time for CMA CGM’s Northern Europe routes decreased from 105 to 98 days when the ships returned to the Suez Canal.

In the past, the decision to reroute vessels was more closely linked to specific threats or incidents. Carriers such as Maersk and Hapag-Lloyd suspended their transits two years ago, acknowledging that their vessels had been targeted by the Houthis. While the vessels had only experienced minor damage or close misses, the carriers emphasized the concern for the safety of the crew and vessel, and no one questioned the decision to suspend and then reroute service.

The decision is also a setback for the Suez Canal Authority, which was looking to rebuild volume this year. It has been active in its communications with the major carriers and highlighted the renewed stability in the region after the Gaza ceasefire.
 

 

Trial to Begin for Chinese Captain Charged with Damaging Baltic Pipeline

 

A court in Hong Kong is preparing to hear testimony in the trial of a Chinese captain charged with damaging a pipeline and cables in the Baltic in 2023. The court convened on January 20, but the hearing was postponed until February 11 to give the defense lawyer additional time to review the evidence.

Captain Wan Wnguo, age 43, is expected to formally enter a plea in the case on February 11 after having been held since May 2025. He was remanded into custody more than eight months ago and has not applied for bail. The court appointed a lawyer in July 2025 to represent him at the trial.

Finland has been pressing China for cooperation in the case since the damage was first discovered in October 2023. Estonian police suspected the vessel, the NewNew Polar Bear, damaged telecom cables running to Finland and Sweden on October 7 and 8, 2023. The following day, October 8, damage was also detected to the BalticConnect gas pipeline running to Finland. 

The NewNew Polar Bear (15,950 dwt) became in 2023 the first Chinese-owned containership to reach the Russian port in Kaliningrad after making a six-week passage from China along the Northern Sea Route. The trip was hailed as a key step, and then just days later, the vessel was suspected of dragging its anchor along the Baltic sea floor. 

The ship arrived in port, missing one of its anchors, which the Finnish authorities would ultimately retrieve. Convinced that the ship had damaged the undersea assets, Finland turned to China to aid in the investigation and prosecution. China admitted in 2024 that the Hong Kong-registered ship had likely caused the damage and, in May 2025, detained the ship’s master.

Chinese officials assert Captain Wan had been reckless in the operation of the vessel, but have never asserted intent to damage the assets. The charge sheet, Reuters reports, listed the offenses as damaging the property without a lawful excuse. The penalty could be up to two years in jail.

The lawyer for the defense, Jerry Chung, told Reuters on Tuesday that a total of 10 witnesses were expected to testify regarding the charges. He said it would include other members of the ship’s crew, as well as Hong Kong officials and two experts.

They have also brought two charges of safety violations against Captain Wan. One relates to a failure to report the loss of the vessel’s anchor. He is also charged with failing to provide weekly reports to the vessel’s owner.

Gasgrid Finland, which operates BalticConnect, reports that it cost the company more than $41 million to repair the pipeline. The incident also sparked increased concern regarding the safety of key undersea assets and the fear that Russia could be staging a so-called hybrid war targeting the assets.

Finland last year attempted to prosecute three crewmembers of another shadow fleet tanker that they asserted damaged telecom cables. The case is on appeal after the court ruled, after months of testimony, that Finland lacked the authority to prosecute because the incident had happened in international waters. Finland is currently detaining crewmembers from another vessel while they are investigating a similar case in which an anchor was dragged, damaging cables running along the sea floor in the Baltic.

 

Strategic Marine Delivers CTV Newbuild to Taiwanese Customer

 

Singaporean shipbuilder Strategic Marine has delivered the second 27-metre Z-Bow Crew Transfer Vessel (CTV) to Taiwan for an undisclosed customer.

With the delivery, Strategic Marine completed the two-vessel program for the client.

Purpose-built for offshore wind farm duties, the vessel was developed in close collaboration with BMT Limited and features advanced marine engineering to ensure reliable performance in demanding operating conditions.

Equipped with controllable pitch propellers, bow thrusters, and an Active Fender System, the

“The successful delivery of the second 27m Z-Bow CTV to Taiwan marks another step forward in our collaboration with the customer. These vessels highlight our focus on building dependable, high-performance solutions that support the continued expansion of offshore wind energy,” said Chan Eng Yew, Chief Executive Officer of Strategic Marine.

Shipbuilding is Full Speed Ahead at RMC in Finland January 15, 2026

 

For Rauma Marine Constructions (RMC), the year has had a strong start. Today, a significant milestone was reached in the Squadron 2020 project with the start of production of the fourth multi-purpose corvette and the keel-laying of the third one. This also means that all four multi-purpose corvettes of Pohjanmaa class -- ships that measure 117 x 16.5m with a 5m draft and a crew of 70 -- are now simultaneously under construction at the RMC shipyard. Moreover, preparations are in full swing for the production of the two icebreakers ordered by the United States at the end of 2025.

The year 2026 is expected to be particularly interesting and significant for the Rauma shipyard. Today, a unique landmark was achieved with a steel cutting ceremony that launched the production of the fourth multi-purpose corvette for the Finnish Navy. The event coincided with the keel-laying of the third corvette whose production started last August. The second multi-purpose corvette under construction is nearing the completion of hull works, while the first corvette, which was launched in May 2025, has reached the outfitting stage.

"We are very pleased to now have all the multi-purpose corvettes of Pohjanmaa class under construction at the Rauma Shipyard. We have industrialised our procedures and construction processes to meet the requirements of our clients’ demanding projects. This is reflected in the progress we have made in the basic shipbuilding activities, in other words, hull construction," says Mika Nieminen,CEO and President of RMC.

Mika Nieminen, CEO & President, RMC. Image courtesy RMC

The direct employment impact of the Squadron 2020 project is about 3,600 person-years in Finland. RMC is building a total of four multi-purpose corvettes of the Pohjanmaa class to the Finnish Navy. The Pohjanmaa class is one the most capable vessel types in the Baltic region. The vessels are designed for year-round operation in all conditions encountered in the Baltic Sea.

"The start of steel-cutting for the fourth vessel and the keel-laying of the third vessel are, once again, clear indications of the progress of the project and the capability of our marine industry, further strengthened also by the icebreaker projects that are about to start," says Brigadier General Engineering Juha-Matti Ylitalo, the Deputy Chief of Finnish Defence Forces Logistics Command.

The icebreaker contract awarded to RMC by the U.S. Coast Guard at the end of 2025 is proceeding towards production start. For RMC, the direct and indirect employment impact of both of these two projects is something to be especially pleased about. The projected direct employment impact of the two icebreakers is about 2,000 person-years, and the total impact is expected to be about 5,000 person-years. The icebreakers will be delivered in 2028 for operation in the harshest marine environments in the world. The corvette and icebreaker projects are temporally overlapping.

"We are expanding our expert organisation from 300 to about 400 employees, which will support our competency strategy. We are building capabilities and an independent project organisation for the icebreakers, and we have a significant national responsibility for the execution of also this new international project," CEO Nieminen concludes.

EU Simplifies Ship Recycling Certification for Shipowners

 

European shipowners who wish to have their vessels recycled will now be able to fulfil their legal obligations using a single administrative form.

The European Commission has adopted new formats for the certificates used to list all hazardous material present on board a vessel and to confirm that a ship is ready for recycling.

The update will enable ship owners to fulfil their obligations under both the EU's Ship Recycling Regulation and the Hong Kong Convention with a single certificate, thereby reducing administrative burden without lowering the EU requirements.

European ship owners possess around 30% of the world's fleet in terms of tonnage. However, many ships are dismantled outside the EU, mainly in South Asia, under conditions that are often harmful to workers' health and the environment.

The EU’s Ship Recycling Regulation was adopted in 2013 to provide a regulatory framework for the recycling of large seagoing vessels sailing under an EU Member State flag.  

The Regulation includes:

• Requirements for ships and recycling facilities;

• Limits and prohibitions on the installation and use of hazardous materials on ships (i.e. asbestos);

• The European List of compliant ship recycling facilities located in the EU and the rest of the world.  

The Hong Kong Convention, which entered into force in June 2025, establishes international standards for the safe and environmentally sound recycling of ships, although these standards are less stringent than those outlined in the EU Ship Recycling Regulation in certain areas.

As part of the experience-building phase set by the IMO, the Commission will contribute to the assessment of the Convention’s implementation and to its improvement towards stricter global standards.

All-Electric Light Cargo Transfer Vessel Enters Service

 

Hydromover 2.0, an all-electric light cargo transfer vessel designed by Incat Crowther for Singapore’s marinEV, a business of Yinson GreenTech, has officially entered service in Singapore.

Building on the success of the prototype Hydromover 1.0, Singapore’s first fully electric cargo vessel launched in 2023, the next-generation Hydromover 2.0 is now transporting light cargo to vessels anchored in the Singapore Strait waiting to dock at the Port of Singapore. The launch of Hydromover 2.0 marks a major step forward in Singapore’s efforts to decarbonize its harbour craft fleet.

The 24-metre Hydromover 2.0 features an ultra-efficient hull form that maximises range and energy efficiency while ensuring smooth navigation in challenging sea conditions. The vessel can carry a 30-tonne payload across its 70m² cargo deck and is powered by a lithium-ion battery. 

Hydromover 2.0 also integrates advanced digitalisation features, including real-time analytics, route optimisation, collision detection and automated vessel management systems that helps to ensure efficient and safe operations.

Fully charged in under two hours, Hydromover 2.0 delivers high uptime and reliability for daily operations, providing 50% more cargo capacity and a 75% larger deck space than the prototype vessel.

This supports greater cargo consolidation, efficiency and flexibility in port operations. Hydromover 2.0 also boasts an increased energy storage capacity and a redesigned electrical architecture to reduce power loss. These improvements translate into a threefold increase in the vessel’s operational range.

Unveiling the vessel, Yinson GreenTech also announced a bareboat charter agreement with Yacht International UAE with delivery of Hydromover 2.0 vessels to the United Arab Emirates (UAE) expected to occur by mid-2026.

A memorandum of understanding (MoU) has also been signed between Yinson GreenTech, Yacht International UAE, and Wilhelmsen Port Services to advance the deployment of electric vessels throughout UAE ports.

Hopes Fade for Bright Start of 2026 for Ship Recyclers

 

The Baltic Exchange Dry Index halted a nine-session slide to mark a 2.3% U-turn, climbing to 1,567 points, reports cash buyer GMS. This was driven by gains across segments: Capes (up 2.3%), Panamax (up 4.3%), and the smaller segments adding four points by week’s end.

“Notably, the overall benchmark index still finished the week down 7.2%. Oil too continued to trip on itself and stayed below the coveted USD 60/barrel mark despite a 0.4% increase, closing the week out at USD 59.44/barrel.

“The U.S. Dollar meanwhile dominated all ship recycling currencies this week, while local steel plate prices across destinations dissolved into a mixed bag of opposing moves — both competitively and historically (i.e., versus last week).

“As such, ship recycling markets may continue to be deprived of tonnage as hopes for a brighter start to 2026 — indicated by the tapering indices back in November – December 2025 — begin to fade once again.”

Prices across the Indian sub-continent have continued on a downward path over the last month, with dry bulk indications at the bidding tables regularly below USD 400/LDT and several sales reportedly even being concluded in the USD 370s–USD 380s/LDT range.

Across destinations, India briefly surged by about USD 30/LDT before losing the full move the very next week as fundamentals softened. Pakistan’s demand has begun to show, with end buyers now increasingly hungry to fill plots as empty anchorages become more of the norm than the exception.

“Bangladeshi recyclers have largely been on the lookout for particular units based on their recent appetites as local offerings have helped them bounce back to the top of the market rankings again. And Turkey? A bevy of European RoRos finally arrived Aliaga this week, delivering much-needed sustenance to an ailing local industry.”

Overall, the near-future still looks quiet, says GMS.

GMS demo rankings / pricing for week 3 of 2026 are: