Gemini’s Suez Return Highlights Divided Carrier Strategies
Prospects for the return of container services to the Suez Canal have shifted again following the Gemini Cooperation’s latest announcement confirming the full resumption of services through the region.
CMA CGM, which became the first major carrier to re-enter the Red Sea in early November, reversed its position last week, withdrawing its Red Sea routings amid renewed security concerns.
By contrast, Gemini partners Maersk and Hapag-Lloyd confirmed yesterday that their ME11 service — linking India and the Middle East with the Mediterranean — will recommence Suez Canal transits from mid-February. Notably, the ME11 sailings will traverse the high-risk zone under the protection of the US Navy.
Regional tensions intensified last month after Houthi rebels released footage of a vessel on fire, accompanied by a brief warning message stating “soon”. This coincided with escalating friction between the United States and Iran.
Gemini was the first alliance to formally signal a return of a full service loop, announcing last month that its MECL service connecting the Middle East with the US East Coast had resumed operations. Current carrier schedules continue to show Suez Canal transits for this service.
Market reports indicate that insurance premiums for vessels transiting the region have fallen significantly from highs of around 1%, pointing to improved confidence. Nevertheless, a widespread industry return to Suez appears unlikely in the near term and will largely depend on the absence of further Houthi attacks, as well as any meaningful de-escalation in US–Iran relations.
Killick Martin continues to monitor developments closely.
