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Hapag-lloyd launches new Red Sea Route! Maersk and CMA CGM are also making new moves in the Red Sea

Feb 22, 2024|View:10

As tensions continue in the Red Sea region, liner companies are also adjusting their business. Recently, a number of companies, including Hapag-Lloyd, Maersk and CMA CGM, have issued new announcements related to their Red Sea business.

On February 20. Hapag-Lloyd announced the launch of a new Turiye Red Sea Feeder Service (TRS).

Hapag-lloyd related announcement

TRS will make its maiden voyage from Iskenderen Port, Turkey on March 3. with the first vessel "LEYLA KALKAVAN" calling at Iskenderen (Turkey) - Mersin (Turkey) - Jeddah (Saudi Arabia) - Akkba (Jordan) - Iskenderen (Turkey).

Order of port of call for TRS route

Since the outbreak of the Red Sea crisis, Hapag-Lloyd has been actively opening up new transport lanes.

In January this year, Hapag-Lloyd had launched a new inland cargo solution: a land transport channel from Jebel Ali, UAE, Damman, Saudi Arabia and Jubail, Saudi Arabia to Jeddah, Saudi Arabia, with connections to Marine liner services from Jeddah.

This transport scheme would allow ships to avoid sailing in the Red Sea area.

Schematic diagram of Hapag-Lloyd's Inland Freight solution

In addition, Maersk also issued a Red Sea/Gulf of Aden related announcement on February 20.

Maersk said that in light of the recent Red Sea situation, it decided to reduce the peak season surcharge (PSS) on the Asia-Mediterranean route from Feb 21.

The new PSS charges are set at $750 /TEU and $1.500 /FEU, which were previously set at $1.000 /TEU and $2.000 /FEU, representing a 25% reduction.

Maersk Chief Executive Vincent Clerc, speaking at the company's 2023 results, said volumes remained strong and that the Red Sea crisis had caused current capacity shortages and temporary price increases, but that eventually excess capacity in the shipping industry would lead to price pressures.

Maersk also expects the industry to face a significant overcapacity in 2024. The duration and extent of the Red Sea crisis, which remains highly uncertain, is expected to have an impact on results throughout the year.

In addition to Maersk, CMA CGM also adjusted its PSS from Europe to India, the Middle East and the Red Sea.

Cma related announcement

From March 1. CMA CGM will charge $200 per container of PSS for dry containers shipped from Northern Europe, Scandinavia, Poland, Baltic Sea, Mediterranean Sea, Adriatic Sea, Black Sea and North Africa to the Indian ports of Navasheva, Mundra and Hazra.

PSS of $200 / box is charged for dry boxes from Northern Europe, Scandinavia, Poland, and the Baltic Sea to the Middle East, Djibouti, and Yemen.

PSS of US $300 / box is charged for dry boxes from the Mediterranean, Adriatic, Black Sea and North Africa to the Middle East, Djibouti and Yemen.

It is noteworthy that on February 19. the Council of the European Union announced the launch of the Red Sea and Gulf escort operation, named "Shield", with the goal of "restoring and maintaining freedom of navigation in the Red Sea and Gulf".

The EU said the operation would take place over the main sea lines of communication in the Bab al-Mandeb and Strait of Hormuz, as well as in international waters in the Red Sea, Gulf of Aden, Arabian Sea and Gulf of Oman, as well as the Persian Gulf, for a provisional period of one year.

This also means that the EU believes that the Red Sea crisis will not ease in the short term.