With the Gaza ceasefire coming to an apparent end, hopes of container shipping returning to the Suez Canal route in the near future have now seemingly faded significantly.
Houthi Rebels carried out attacks on a group of US warships in the Red Sea this week in response to the US launching air attacks on Houthi targets in Yemen at the weekend. The Houthis have now vowed to continue targeting vessels in the region.
During the past two months, the ceasefire had raised hopes that a return to commercial shipping through the Red Sea may be viable within a few months.
Carriers were never going to build up trust overnight and risk sending vessels via the shorter route, and they would have had major capacity issues to resolve before doing so.
One large carrier recently explained that the Cape of Good Hope is not their preferred option as it lacks navigational services. While they do intend to return to Suez, they see no immediate prospect of it happening.
This week’s return to hostilities suggest we may not see services operating through the Red Sea before the end of this year, unless a more permanent peace agreement is reached in the region in the very near future.
As ever, the team at Killick Martin are monitoring developments. Should you require further information on the above, then please do not hesitate to contact us.
