Recent hopes that a return to the Suez Canal shipping route may be on the horizon have vanished, following the return to hostilities in the Middle East.
After the Gaza ceasefire came to an end, the US launched air strikes on rebel targets in Yemen before Houthi Rebels carried out attacks on US warships in the Red Sea last week. The Houthis have since vowed to continue targeting vessels in the area.
The ceasefire lasted for around two months and raised hopes that a return to normality may be viable within a few weeks or months.
Carriers will need to rebuild trust in the shorter route before they risk their crews and vessels, along with having many capacity and scheduling issues to overcome.
Therefore, unless a permanent peace agreement is reached in the very near future, it is unlikely that mainstream Asia-European services will be operating through the Red Sea this year.
We understand that the Cape of Good Hope is not the preferred option for carriers in the longer term, even though there is little prospect of a change right now. Not only is it 20+ days longer per round trip, but it lacks navigational services.
Global Freight Services continues to monitor developments. Should you require further information, then please do not hesitate to contact us.
