Major shipping carriers resume some sailings through Suez Canal

Major shipping vessels are starting to return to the Suez Canal instead of sending ships around Africa’s Cape of Good Hope.

The global diversion away from the Red Sea and Bab el-Mandeb Strait began in November 2023 when Yemen’s Houthis launched attacks on Israel-linked vessels.

In the following years, thousands of container ships took the longer route around the southern tip of Africa - adding almost 1,000 kilometers and up to two weeks to the journey.

The detour sent the cost of freight soaring and pushed up shipping costs across the board.

Now with the situation in the Middle East showing signs of deescalation, major carriers say some services will return to the Red Sea route.

In a statement, Danish shipping giant A.P. Moller Maersk said it will reroute the AE15 -- one of the services shared under its Gemini Cooperation with Hapag-Lloyd -- via the Suez Canal, dropping the Cape of Good Hope detour.

The Gemini Cooperation is a shipping network jointly established by Maersk and Hapag-Lloyd. The AE15 service connects Asia, the Mediterranean Sea and Europe.

According to a Hapag-Lloyd spokesperson, the adjustment is expected to cut the overall voyage duration by up to four weeks.

Maersk said the decision to resume Suez Canal transits came after "a comprehensive assessment of the security situation in the Red Sea region," adding that it marks "a step toward gradually returning to the Suez Canal route."

Both companies have contingency plans in place that would allow for swift adjustments if the Red Sea security situation deteriorates.

However, neither of them plans to change the rest services of the Gemini network for now, and both said they will keep a close watch on developments in the Middle East. Any future adjustments, they said, will hinge on whether the Red Sea remains stable and regional conflicts do not escalate.

Before the crisis began, the Suez Canal carried an estimated ten percent of global seaborne trade.