Shipping Giants Reevaluate Suez Canal Routes Amid Security Concerns

Major shipping companies are planning a cautious return to the Suez Canal after years of disruptions caused by security threats in the Red Sea. Following a ceasefire, companies like Maersk, CMA CGM, and Hapag-Lloyd are evaluating the risks and potential benefits of resuming this crucial shipping route.

Major shipping companies are reconsidering their strategies for using the Suez Canal after two years of disruptions following security risks in the Red Sea. Companies have rerouted vessels via costlier routes around Africa since November 2023, due to attacks on commercial ships by Yemen's Houthi forces.

A ceasefire agreement in October has prompted some companies to explore plans to resume passage, despite ongoing security concerns. Industry leaders like Maersk and CMA CGM are taking cautious steps, witnessing successful trial transits but withholding full route reinstatement while continuous monitoring persists.

Hapag-Lloyd noted that the industry's return would likely be gradual, with a transition period to adapt logistics and mitigate port congestion risks. Meanwhile, Wallenius Wilhelmsen remains in an assessment phase, indicating a contingent approach to resuming their Suez operations.

(With inputs from agencies.)