Shipping Companies Eye Suez Canal Comeback

The Suez Canal is back on the radar for big shipping companies. After two years of avoiding the route due to safety issues in the Red Sea, they're now thinking about going back. The trouble started in November 2023 when ships were attacked by Yemen's Houthi forces, leading companies to take the longer, more expensive route around Africa.

A Glimmer of Hope

Things might be looking up now. A truce was agreed upon in October, and some companies are considering their options. But safety is still a big worry.

Maersk's Cautious Approach

Maersk, a Danish shipping giant, recently sent a ship through the Red Sea and Bab el-Mandeb Strait for the first time in almost two years. However, they're not ready to fully commit to the Suez Canal route just yet. They're taking it slow, one step at a time.

CMA CGM's Planned Route

CMA CGM, another major player, has already planned to use the Suez Canal for its India-U.S. service starting in January. They've been using the canal occasionally when it's safe, so this isn't entirely new for them.

Hapag-Lloyd's Gradual Return

Hapag-Lloyd, a German shipping group, expects a gradual return to the Suez Canal. They're planning a transition period of 60-90 days to avoid any sudden chaos at the ports.

Wallenius Wilhelmsen's Caution

As for Wallenius Wilhelmsen, a Norwegian car shipping company, they're still checking things out and won't resume sailing until they're sure it's safe.

Proceeding with Caution

All in all, while the Suez Canal might be opening up again, it's clear that shipping companies are proceeding with caution.