FRENCH shipping giant CMA CGM says it will divert most services away from war risk waters but undertake Red Sea transits on a case-by-case basis, reports New York's FreightWaves.

Other major carriers have diverted their ships away from the Red Sea-Suez Canal-Gulf of Aden route around the Horn of Africa since Iran-backed Yemen's Houthi insurgents began attacking merchant shipping linked to Israel.

The assaults with missiles, drones, and watercraft began shortly after the war in Gaza began in October 2023. Attacks have killed four crewmen and sunk several vessels.

The longer voyages have reshaped the global supply chain, removing capacity from the market and pushed up freight rates.

US and EU naval forces have since provided escorts for vessels in the Red Sea. The military forces have published several images on social media of CMA CGM ships under escort.

"The recent ceasefire agreement between Israel and Hamas allows humanitarian relief and hope for peace," CMA CGM said in the update. "Recent developments in the region suggest progress towards greater stability, which is a positive but fragile sign for the global shipping and logistics industry.

"Yet, the safety of our seafarers, vessels, and our customers' cargo remains the CMA CGM's priority. Given the ongoing risks for commercial vessels in certain areas, CMA CGM will for the time continue to prioritize alternative routes, such as passage via the Cape of Good Hope," said the company.