Maritime container carriers are slowly returning to sending their ships through the Red Sea and Suez Canal after avoiding the war-torn waters for nearly three years, as Hapag-Lloyd AG this week announced plans to join Maersk A/S in sailing that route.
Ocean container lines have been avoiding that region after geopolitical violence in Israel and Gaza led to rising attacks on commerce by militia members targeting western ships. For vessels moving between Asia and the North American east coast, the alternative is a longer but safer trail around the southern tip of Africa.
Last month, fellow ocean line CMA CGM briefly began to transit the Red Sea shortcut again, but then quickly reversed its decision and resumed the longer route.
In joining Maersk with a Suez return, Hapag-Lloyd will strengthen the two companies’ “Gemini Cooperation” initiative, which has seen the partners combine forces to deliver a more flexible and interconnected ocean network.
When those lanes resume in mid-February, it will signal a significant move for expanding the capacity of Gemini shipments due to the faster round trips, according to transportation analyst firm Xeneta.
“All ships on this Gemini ME11 service are operated by Maersk, but it still means Hapag-Lloyd will have cargo onboard. Perhaps it is surprising given rising tensions in Middle East and CMA CGM recently reversing a decision to return two of its services to the region, but the added assurance of naval protection may have helped Hapag-Lloyd take this important step,” Emily Stausbøll, Xeneta Senior Shipping Analyst, said in a release.
“The fact Gemini has chosen to return large vessels is important for two reasons,” Stausbøll, said. “Firstly, the bigger the ship, the more cargo is onboard and potentially the higher the risk. But also, returning vessels to the Red Sea of this size on the ME11 service will free up 31 000 TEU of capacity due to full loops via Suez Canal rather than Cape of Good Hope reducing transit times by two weeks, down to 70 days.”
