Far East-Mideast trade capacity falls 14% on Gulf conflict

HMM and SeaLead made the largest individual cuts.

Capacity on the Far East–Indian Subcontinent, Middle East, and Red Sea trade fell by 14% year on year to just under 1.9 million twenty-foot equivalent units (TEU) in late July, according to Alphaliner.

The decline of around 312,000 TEU came as carriers responded to security concerns surrounding the Gulf conflict.

The largest individual declines came from South Korea-based HMM, which cut around 115,000 TEU, and Singapore-based SeaLead, which withdrew approximately 66,000 TEU.

“Indeed, smaller players on the trade—those with a capacity share of less than 1%, including carriers like HMM and SeaLead that withdrew or ceased deploying tonnage on the route—accounted for almost 90% of the overall decline in capacity,” it added.

The 18 largest carriers on the trade, with a capacity share of 1% or more, saw little aggregate change in capacity despite substantial movements by individual operators.

France-based CMA CGM recorded the largest increase, adding almost 70,000 TEU, or close to 40%, compared with July 2025.

Meanwhile, China-based COSCO Group, including OOCL, recorded the largest reduction amongst the trade’s top 18 carriers, cutting capacity by around 60,000 TEU.

Switzerland-based MSC retained its lead with a 3% increase in capacity, despite reducing its vessel count from 25 to 18 ships.