Ocean Alliance Resumes FAL1 Suez Transit, Leveraging Jeddah Capacity Expansion

The Ocean Alliance has revised its Europe–Far East FAL1 service to resume eastbound transits via the Suez Canal, including a new call at Jeddah, marking a measured return to Red Sea operations amid ongoing regional security considerations. The service, operated by CMA CGM within the four-carrier Ocean Alliance (CMA CGM, COSCO Shipping Lines, OOCL, Evergreen), represents the second loop to return to Suez following widespread suspension in 2024 due to Houthi attacks.

The FAL1 adjustment allows carriers to capitalize on Jeddah Islamic Port’s expanded capacity, where DP World’s South Container Terminal, inaugurated in March 2025 at $800 million, doubled capacity from 1.8 million TEU to 4 million TEU. Meanwhile, Red Sea Gateway Terminal (RSGT) has developed additional multipurpose terminal capacity through a T4 joint-venture facility with CMA CGM, formalised via a term sheet in October 2025.

CMA CGM has historically maintained the most consistent Suez Canal presence among major carriers, moving approximately 1.5 million TEU through the waterway in 2025 versus Maersk’s 1.1 million TEU, benefiting from French naval protection and reduced exposure to Houthi targeting.

The FAL1 route revision reduces roundtrip transit time by one week, from 105 days via the Cape of Good Hope to 98 days through the Suez Canal, providing a competitive edge over alternative routing while still carrying inherent security risks. The move reflects a growing commercial confidence in Red Sea stability, balanced against operational imperatives to restore efficient Europe–Asia connections. CMA CGM’s Med5 service remained the only loop via Suez throughout 2025, making the FAL1 adjustment a strategic expansion rather than a full-scale network return.

The routing change aligns with Saudi Arabia’s Vision 2030 logistics ambitions, which aim to expand container throughput significantly, with published reporting noting targets of approximately 40 million TEU annually by 2030, underscoring Jeddah’s role as a key regional hub and the Kingdom’s commitment to long-term maritime infrastructure development.

Neutral counterpoint: However, industry observers note that single-loop expansions or reroutings are not unusual during periods of network optimisation and capacity adjustments. FAL1’s return to Suez may reflect service-specific scheduling and terminal alignment factors rather than a broad endorsement of the Red Sea as a fully stable corridor. Competitors, including Maersk’s Gemini Cooperation with Hapag-Lloyd, continue to evaluate Suez versus Cape of Good Hope routing based on risk-reward trade-offs, while MSC maintains its independent network strategy.

Sources: Container News, Seatrade Maritime, Splash247, Seatrade Maritime, Hellenic Shipping News, Hellenic Shipping News, Hellenic Shipping News, Hellenic Shipping News, gCaptain