Reuters: Global shipping takes first step back to Suez Canal

Shipping giants Maersk and Hapag-Lloyd will resume selected sailings through the Suez Canal under their joint Gemini network, marking a cautious return to one of the world's most important maritime trade routes after months of disruption caused by security threats in the Red Sea, Reuters reports.

The announcement, made by Maersk on July 6, sent shares of both companies lower amid concerns that a broader return to the route could weigh on freight rates. By 1147 GMT, Maersk shares had fallen 6.6%, while Hapag-Lloyd was down 3.8%.

Most global shipping companies abandoned the Asia-Europe corridor through the Suez Canal following attacks by Yemen's Houthi movement on commercial vessels in the Red Sea, opting instead for the significantly longer route around Africa's Cape of Good Hope. The diversion extended transit times and drove up shipping costs.

"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.

According to data from Clarksons Research, the Suez Canal-Red Sea corridor handled around 10% of global seaborne trade before the attacks began and remains the fastest shipping route linking Europe and Asia.

Maersk said there are currently no plans to alter any other Gemini services, adding that the company would continue to closely monitor developments in the Middle East.

"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," the company said.

Analysts view the move as a potential turning point for global shipping. "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 wrote in a note to clients.

He added that a complete return to the route, combined with an expected increase in vessel deliveries in 2027 and 2028, could put downward pressure on freight rates and shipping companies' earnings.

Maersk and Hapag-Lloyd had already resumed their joint ME11 service linking India and the Middle East with the Mediterranean through the Suez Canal in mid-February, with vessels operating under naval escort.

By Vafa Guliyeva