Shippers on Asia-Europe and US East Coast routes face disruptions as Red Sea tensions rise, impacting safe passage through the Suez Canal.
Shippers on Asia-Europe and US East Coast trades are again facing disruption as tensions in the Red Sea escalate, reports London's S&P Global. A US carrier strike group has entered the Gulf of Oman amid threats of military action against Iran, raising fears of renewed attacks by Iran-backed Houthi forces.
The deteriorating security situation has left carriers and their customers uncertain about when safe passage through the Suez Canal will resume. Destine Ozuygur, senior analyst at Xeneta, said shippers are at the bottom of the decision chain and are more vulnerable to shocks than other stakeholders.
Ms. Ozuygur told the Journal of Commerce that shippers must base procurement strategies on the unpredictable behavior of carriers, insurers, politicians, and militias. She warned that even with advanced tools and data, forecasting developments beyond days remains impossible.
Hopes of resuming Suez transits rose after Maersk announced a Middle East-US East Coast service via the Red Sea in mid-January. However, CMA CGM quickly scaled back plans for three Asia-Europe services, citing the uncertain international context.
The optimism was further undermined when Houthis released videos threatening renewed attacks, followed by the arrival of the USS Abraham Lincoln strike group and fresh warnings from President Donald Trump against Tehran.
A European retailer stated that his company had planned to resume Suez transits after Lunar New Year but reversed course after insurers refused coverage for Red Sea cargo. Another importer mentioned that premiums were prohibitively high despite coverage being available.
Allianz Commercial stated that war risk premiums are set by individual underwriters and vary by vessel and voyage, reflecting current conditions. Andy Gillespie of WOWL noted that alliance networks complicate insurance riders, as containers may be placed on partner vessels transiting Suez.
James Hookham of the Global Shippers Forum said carriers may be reluctant to publish route schedules given the security risks. Ms. Ozuygur added that shippers must weigh shorter, riskier transits against longer, safer diversions, with contingency plans in place.
Drewry’s Red Sea Diversion Tracker showed container ship transits via Suez rose 69 percent to 61 in the two weeks ending January 25, up from 36 in the prior period, as carriers balanced safety concerns against commercial gains.
