Maersk begins return to Suez Canal as Red Sea risks ease

Maersk (MAERSKb.CO) will restart sailings through the Suez Canal and the Red Sea this month, taking the first major step toward ending nearly two years of disruption to global shipping caused by attacks on vessels by Yemen’s Houthi militants.

The Danish shipping group said one of its services will resume the shorter route later in January, as security conditions in the region show signs of stabilising. Investors reacted quickly. Maersk shares fell more than 7%, reflecting fears that shorter journeys could push freight rates lower.

Suez Canal and Red Sea Shipping Routes

Maersk said its Middle East–India–U.S. East Coast service, known as MECL, will be the first to return to the Suez route. The first sailing is scheduled to depart from Oman’s port of Salalah on January 26.

“This decision follows a continued stabilisation of conditions in and around the Red Sea, including the Suez corridor,” Maersk said, adding that the goal was to offer customers faster and more reliable transit times.

Shipping firms had largely avoided the route since late 2023, when Houthi attacks forced vessels to reroute around Africa’s Cape of Good Hope. The longer route increased fuel use, transit times, and costs across global supply chains.

Impact on Global Trade and Freight Rates

Before the attacks, the Suez Canal was the fastest link between Europe and Asia and accounted for about 10% of global seaborne trade, according to Clarksons Research.

Maersk said it is taking a gradual approach and has contingency plans if security conditions worsen. Individual sailings could still be diverted back to the longer Africa route if risks return.

Earlier this week, the company said one of its vessels had already tested the route, following a ceasefire in Gaza that raised hopes of safer passage. Another Maersk vessel transited the canal in December.

Industry Response and Market Signals

Not all shipping firms are ready to follow. German rival Hapag-Lloyd said it would not change its Red Sea operations for now but is closely monitoring the situation, noting that Maersk’s move has altered market dynamics.

The ceasefire in Gaza, in place since October, has reduced major fighting but remains fragile. Both sides have accused each other of violations, and casualties have continued since the truce began.

Read more on Relief for carmakers as Nexperia chip shipments resume after China-Netherlands standoff