Differences in shipping companies when returning to the Red Sea

The German container shipper Hapag-Lloyd, along with Japan’s largest shipping companies, are continuing to route their ships around the Suez Canal for safety reasons, due to recent targeting of ships by Yemen’s Houthi militant group. This has disrupted global trade and led to increased costs and longer transportation times for goods from Asia to Europe and North America. The situation remains uncertain, with shipping companies pursuing different approaches. Maersk plans to primarily route its container ships through the Suez Canal, while France’s CMA CGM is also increasing the number of ships passing through the canal in response to the crisis. As a result of the ship diversions, sea transport costs have risen, and the Suez Canal’s closure could cost up to $1 million in additional fuel for each round-trip between Asia and northern Europe.

Hapag-Lloyd and Japan’s largest shipping companies are continuing to route their ships around the Suez Canal for safety reasons, due to recent targeting of ships by Yemen’s Houthi militant group. This has disrupted global trade and led to increased costs and longer transportation times for goods from Asia to Europe and North America. The situation remains uncertain, with shipping companies pursuing different approaches. Maersk plans to primarily route its container ships through the Suez Canal, while France’s CMA CGM is also increasing the number of ships passing through the canal in response to the crisis.

As a result of the ship diversions, sea transport costs have risen, and the Suez Canal’s closure could cost up to $1 million in additional fuel for each round-trip between Asia and northern Europe. Shipping company stocks have risen on expectations that longer routes will lead to higher freight rates. The closure of the Suez Canal is a significant issue, as it is used by around a third of the world’s container ship cargo.

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