Major container shipping lines have suspended plans to return to the Red Sea-Suez Canal route after war broke out in the Middle East over the weekend.
According to industry reports, tensions escalated in the region at the weekend after Israel and the US attacked Iran. Although no official confirmation has been issued regarding renewed Houthi attacks on commercial shipping in the Red Sea, reports indicate that the Bab el-Mandeb Strait could be closed to shipping as Iran has implemented similar measures in the Strait of Hormuz.
Shipping companies confirm change of route
Major carriers including Maersk, Hapag-Lloyd, CMA CGM and MSC have stated that, due to the deteriorating security situation in the Middle East and restrictions affecting maritime traffic in the region, they have suspended or postponed Suez Canal transits, instructed vessels in the Gulf to take precautionary measures or seek shelter, and are rerouting services via the Cape of Good Hope, while some companies have also temporarily paused bookings for the Middle East until the security situation becomes clearer.
Freight market outlook affected
Meanwhile, reports indicate that the escalation weakens hopes for a large-scale return of container shipping to the Red Sea in 2026, meaning freight rates may continue to soften but are unlikely to fall as sharply as previously expected, despite earlier projections that a return to the Suez Canal route, which has been under pressure from Houthi attacks since 2023, could release around 2.5 million TEU of capacity into the global container market.
