- First major step towards resuming Red Sea route
- Maersk stopped using the route two years ago due to Houthi attacks
- Share price drops 5% as shorter journeys may hit rates
OSLO, Jan 15 (Reuters) - Maersk will resume sailings via the Red Sea and Suez Canal for one of its services this month, the shipping group said on Thursday, marking a key step towards ending two years of global trade disruption due to attacks on ships by Yemeni Houthi rebels.
The Danish shipping group's share price fell more than 5% on the news, reflecting the likelihood of lower freight rates as vessels gradually return to the shorter Suez route.
Shipping companies are weighing a return to the critical Asia-Europe trade corridor after vessels were rerouted in late 2023 around Africa following the Houthi attacks in the Red Sea in what they said was to show solidarity with the Palestinians in Gaza.
Maersk said its weekly service connecting the Middle East and India with the U.S. east coast, known as MECL, will be first in the group's staggered return to the Suez route, starting on January 26 with a sailing departing Oman's port of Salalah.
"This decision follows a continued stabilisation of conditions in and around the Red Sea, including the Suez corridor, as well as improved stability and reliability in the region," Maersk said in a statement.
Shipping companies are weighing a return to the critical Asia-Europe trade corridor after vessels were rerouted in late 2023 around Africa following the Houthi attacks in the Red Sea in what they said was to show solidarity with the Palestinians in Gaza.
Maersk said its weekly service connecting the Middle East and India with the U.S. east coast, known as MECL, will be first in the group's staggered return to the Suez route, starting on January 26 with a sailing departing Oman's port of Salalah.
"This decision follows a continued stabilisation of conditions in and around the Red Sea, including the Suez corridor, as well as improved stability and reliability in the region," Maersk said in a statement.
The Danish group on Monday said one of its vessels had tested the route as a ceasefire in Gaza raised hopes for normal shipping traffic. One Maersk vessel also made a voyage through Suez in December.
MAERSK TAKES GRADUAL APPROACH TO RETURN TO TRANS-SUEZ ROUTE
Maersk said it would make a gradual return to the Suez route, adding the aim was to offer customers "the most efficient transit times". The route could cut a week off transit routes, it said. This should in theory help bring down costs.
"The return to the Suez Canal should ease freight rates," Germany's chemical industry association VCI said in a statement, calling Maersk's move a positive sign, though adding it would also likely increase imports from China.
"At the same time, however, import pressure from China is increasing: Approximately one-third of imports from non-European countries come from Asia."
The Suez Canal is the fastest route linking Europe and Asia and, until the Houthi attacks, had accounted for about 10% of global seaborne trade, according to Clarksons Research.
"Maersk has contingency plans in place should the security situation deteriorate, which may necessitate reverting individual MECL sailings or the wider structural change of the MECL service back to the Cape of Good Hope route," it said.
German shipping company Hapag-Lloyd will not adjust its operations in the Red Sea for now, a spokesperson said, but added that the company was closely monitoring the situation and Maersk's move changed the situation.
The ceasefire in the Gaza conflict, in place since October last year, has renewed hope of normalising Red Sea traffic.
The ceasefire has ended major combat in Gaza over the past three months, but both sides have accused the other of regular violations. More than 440 Palestinians and three Israeli soldiers have been killed since the truce took effect.
Reporting by Terje Solsvik; Additional reporting by Patricia Weiss; Editing by Gwladys Fouche, Jane Merriman and Alison Williams
Source: Reuters