CMA CGM’s Chairman and CEO, Rodolphe Saade, cautioned against assuming the Strait of Hormuz will return to its pre-war state, emphasizing that it would be “unwise” to think so. The French shipping giant, which ranks as the world’s third-largest container line, has vessels stranded in the Gulf due to the ongoing conflict that has effectively closed this vital waterway, responsible for transporting a significant portion of global oil and LNG.
Saade highlighted that even if peace is achieved soon, future crises could arise, making it risky to rely solely on the Strait of Hormuz. The company is actively exploring alternative routes to navigate the turbulent geopolitical landscape, including transporting cargo via road and rail from farther ports.
Currently, CMA CGM is moving only a third of its usual container volume to the Gulf, incurring an estimated additional cost of $300 million in the first half of the year. At the onset of the conflict, 14 of its vessels were trapped in the Gulf; while two have since departed, one ship was recently attacked, resulting in injuries to eight crew members.
