Container carriers have abandoned plans to return to the Red Sea and Suez Canal route, reinstating diversions via the Cape of Good Hope as fighting escalates in the Middle East, reports the UK's Seatrade Maritime News.

Analysts said renewed military conflict involving Iran, Israel, and the US has shattered hopes of a large-scale return of container shipping to the Red Sea in 2026. Xeneta's Peter Sand warned of further weaponization of trade and prolonged disruption.

Gemini Cooperation confirmed it reversed its decision to re-route its ME11/IMX service via Suez, while Maersk canceled plans to shift its MECL service through the canal. Both cited deteriorating security conditions around Bab el-Mandeb Strait.

Hapag-Lloyd, Maersk's partner on the ME11/IMX service, also paused Trans-Suez sailings. CMA CGM suspended services via Suez, ordered Gulf vessels to shelter, and re-routed traffic around the Cape of Good Hope. MSC issued similar instructions, halting bookings for the Middle East.

Shippers had anticipated a return to the Suez Canal that would have released 2.5 million TEU into the market, adding pressure on already declining spot freight rates. Mr. Sand said rates will soften but not collapse as hard as expected.

Gulf ports remain isolated by geography. MDS Transmodal's Antonella Teodoro said simultaneous closures of Bab el-Mandeb and Hormuz would compound supply chain risks, expose reliance on narrow corridors, and highlight the fragility of the region's port-centric economic model.