Missile-damaged CMA CGM San Antonio could go straight to scrap

The Malta-flagged 2,824-TEU container ship CMA CGM San Antonio may be sent for demolition after suffering extensive damage in a missile strike in the Strait of Hormuz, according to CMA CGM chief executive Rodolphe Saadé. The vessel was attacked during the Iran conflict in early May and was one of dozens of merchant ships affected by hostilities in and around the strategic waterway.

Several crew members were injured in the attack and were evacuated for medical treatment. The vessel subsequently remained stranded in the Strait for several weeks before being escorted to a safe location.

Saadé said the extent of the damage had raised doubts about whether a drydock repair would be economically viable. He told a business conference in southern France: “It was so damaged that we're wondering whether we should send it for scrapping.”

With a long timeline of expensive repairs needed on the 2005-built vessel, there is a chance that class notations on the vessel will be voided by the damage, and it may become impossible to insure the vessel once fixed.

The container ship sustained damage after reportedly being struck by an Iranian projectile while attempting a transit near Oman. The conflict has disrupted traffic through a route that handles a significant share of global energy and trade flows. It is also a key supply line for about 20% of the world’s fertiliser and almost half of the world’s traded urea, an essential component in the production of fertiliser.

Saadé also said CMA CGM did not currently intend to resume sending vessels into the Gulf, adding that Iranian authorities were advising against such movements. The company had 14 ships in the region when the conflict escalated and has since worked to reduce its exposure, with several vessels having already departed the region.