Suez route cautiously resumed: what does this mean for your transport?

More and more container shipping companies are resuming their navigation through the Suez Canal on a limited scale. After a long period in which many ships opted for the longer route via the Cape of Good Hope due to the security situation in the Red Sea, there seems to be cautious movement in the situation.

For you as an importer or exporter, a return to the Suez route can have various consequences. A shorter shipping route can ensure shorter transit times and more efficient use of ships. At the same time, the security situation in the Red Sea remains uncertain.

What will happen to the Suez route?

The Suez Canal is an important connection between Asia and Europe. Due to the situation in the Red Sea, many container services are currently still deshipping via the Cape of Good Hope. This route is considerably longer and therefore requires more sailing time, fuel and shipping capacity.

At the moment, shipping companies are cautiously opting for a partial return to the Suez route. Some services are already sailing via the Suez Canal, while other services will continue to use the route around Africa for the time being. So it is not yet a complete return to the old situation.

The developments do send a clear signal: shipping companies see opportunities to redeploy the Suez route, partly because of the pressure on capacity and the availability of empty equipment.

What are the benefits?

A return to the Suez Canal can have several advantages:

• Shorter transit time: depending on the route, this can save about 7 to 14 days compared to the Cape of Good Hope.
• More efficient use of ships: containers and ships are available again more quickly for the next voyage.
• Better availability of equipment: in the long run, this will allow container flows to be distributed more efficiently.
• Lower fuel costs and emissions: A shorter sailing distance generally means less fuel consumption.
• More effective capacity: ships spend less time on the road, which means that capacity becomes available more quickly.

A larger supply of capacity can also put pressure on freight rates in the long run. The actual effect of this depends on demand and the further route choices of shipping companies.

What risks are there?

A shorter route does not automatically mean a more reliable delivery. The security situation in the Red Sea remains uncertain and shipping companies may adjust their route again in the short term.

In addition, a quick return to Suez could put extra pressure on European ports. When more ships arrive at the same time, temporary congestion, delays and pressure can occur on terminals, depots and hinterland transport.

The availability of containers can also change temporarily because container flows move again.

Check your transport insurance

If your goods are transported via the Suez Canal and the Red Sea, it is wise to check with your transport insurer whether the goods are covered by the existing coverage.

The choice of route is determined by the shipping company and is not entirely within our control. Therefore, check in advance which conditions apply to your specific shipment.

What does this mean for your transport?

For the time being, shipping companies remain cautious and only part of the services are carried out via the Suez Canal. Whether this development will continue depends, among other things, on the security situation in the Red Sea.

It is therefore important for importers and exporters to keep a close eye on the route of your shipment. A return to Suez may eventually lead to shorter transit times and more available capacity, but the transition may also cause temporary disruptions.

Do you have questions about the route of your shipment or the possible impact on your planning? Please contact your regular contact person at Berkman Forwarding.

The cautious return to the Suez route is an important development in international container logistics. A shorter route can offer advantages in terms of transit time, capacity, equipment and costs. At the same time, safety and reliability remain important concerns.

In the coming period, it will become clear whether more and more shipping companies will structurally resume the Suez route.