Maersk, Hapag-Lloyd resume Suez Canal sailings for Asia-Europe route

Shipping giants Maersk A.P. Møller – Mærsk A/S and Hapag-Lloyd announced on Monday that they will resume some sailings through the Suez Canal under their Gemini joint network, marking the first return of a major Asia-Europe service to the waterway since the outbreak of the Iran war forced suspensions in late February.globalbankingandfinance+1

"This joint decision with Hapag-Lloyd comes after thorough assessments of the security situation in the Red Sea area and marks a step towards a gradual return to the trans-Suez corridor," Maersk said in a statement.straitstimes+1

A Faster Route, Lower Rates

The resumption applies to the AE15 service connecting Asia, the Mediterranean, and Europe, which will reduce voyage duration by four weeks compared to the Cape of Good Hope routing, according to a Hapag-Lloyd spokesperson. The Suez Canal route accounted for 10% of global seaborne trade before Houthi attacks in the Red Sea forced most carriers to reroute around Africa beginning in late 2023, according to data from Clarksons Research.globalbankingandfinance+1

Shares in both companies fell on the news due to implications for freight rates. "We view this as the first step that will pave the way for a full return to the Red Sea by the end of this year," Jyske Bank analyst Haider Anjum said. "A full return, and thus more efficient capacity management, combined with the prospect of new ships being delivered in 2027 and 2028, should put pressure on freight rates and, consequently, on shipping companies' earnings."straitstimes+1

Cautious Return Amid Fragile Ceasefire

The announcement comes as maritime security conditions are being reassessed following a June 17 memorandum of understanding between the United States and Iran that included a ceasefire. However, tensions remain, with both sides trading accusations of violations in late June.aljazeera+1

Maersk and Hapag-Lloyd had previously resumed their ME11 service through the Suez Canal in mid-February with naval escorts, but suspended Red Sea transits weeks later after the U.S. and Israel launched strikes against Iran and the conflict escalated.xeneta+3

The companies said they have no plans to change any other Gemini services for now. "Any alteration to services within the Gemini Cooperation will remain dependent on the ongoing stability in the Red Sea area and absence of any escalation in conflicts in the region," Maersk added.globalbankingandfinance+1