ALPHALINER: 63% OF FAR EAST–EUROPE CONTAINER CAPACITY RETURNS TO SUEZ ROUTE
Container shipping lines are increasingly returning to the Red Sea and Suez Canal, despite continuing security risks in the region. According to the latest analysis by Alphaliner, 63% of container shipping capacity deployed between the Far East and Europe is now operating on services that have fully or partially resumed the Suez route, marking a significant shift away from the longer diversion around the Cape of Good Hope.
Between mid-September and mid-October, 24 of the 46 major container services connecting the Far East and Europe used the Red Sea and Suez Canal, at least in one direction. Of the 8.7 million TEU of capacity deployed on these trades, approximately 5.5 million TEU is now assigned to services that have returned to Suez. The proportion is particularly high on Asia–Mediterranean routes, where it reaches 70%, compared with 58% on Far East–North Europe services.
Rising fuel costs and pressure on shipping schedules are important factors behind the return. Low-sulphur bunker fuel prices in Singapore have reportedly increased by 97% compared with a year earlier, making the longer route around southern Africa considerably more expensive. Sailing via Suez can also save approximately two weeks per round trip, helping carriers maintain their schedules amid continued port congestion.
Nevertheless, security risks in the Red Sea remain significant. The French navy recently intercepted a drone targeting the CMA CGM Champs Elysées, underlining the continuing threats to commercial shipping despite the growing number of services returning to the region.
The share of services using Suez is expected to increase further as the Premier Alliance prepares to adjust several Far East services. With ONE, HMM and Yang Ming also expected to resume Red Sea transits, Evergreen and Israeli carrier ZIM would remain the only two top-ten carriers continuing to favour the Cape of Good Hope route.