MSC ramps up Red Sea operations with seven vessels transiting Bab-el-Mandeb, signaling a shift back to Suez Canal routes for Asia-Europe trade.
Shipping lanes in the Red Sea are seeing a major shift. Mediterranean Shipping Company (MSC) has begun ramping up its use of the Suez Canal corridor, with seven vessels transiting the Bab-el-Mandeb Strait in the past two weeks.
This phased resumption signals a reassessment of the Cape of Good Hope diversion strategy that has dominated operations for the past two years. While MSC has not formally announced a full return, its actions suggest a gradual restoration is underway.
For Asia-to-Europe trade lanes, the return to Red Sea routing could reduce transit times by 7-14 days, improving schedules and freeing capacity. Linerlytica predicts that MSC's partial resumption may lead to a full Suez Canal comeback sooner than expected, pressuring competitors still relying on the Cape route to reconsider their strategies.
Other carriers are already making similar moves. Maersk has redirected 30% of its Cape-routed cargo back to the Suez Canal, resuming services on critical routes like MECL and AE19. CMA CGM led the initial return and continues operating services through the Red Sea. This trend reflects a tiered shift among major carriers toward Suez routing, driven by operational efficiency and schedule reliability.
The return is also influenced by Asian port congestion. Recent backlogs at key ports like Shanghai and Ningbo, worsened by typhoon disruptions, are pushing carriers toward shorter routes to maintain on-time performance. A return to Suez routing could alleviate congestion-related delays while optimizing vessel turnaround times.
Freight rates on Asia-to-Europe lanes have dropped for six straight weeks, with declines of 14% to Northern Europe and 17% to the Mediterranean. As more vessels re-enter the Suez corridor, effective market capacity will increase, putting further pressure on rates.
The shift is not a sudden return to full Red Sea operations but a phased and cautious transition. MSC's actions, along with those of Maersk and CMA CGM, mark a structural adjustment in global liner operations. For freight forwarders and logistics providers, closely monitoring route changes will be critical as the reopening of the Red Sea corridor reshapes transit times, schedules, and cost structures across the Asia-to-Europe trade lanes.
