- A major carrier will reroute its India–Pakistan–US East Coast service through the Suez Canal, both eastbound and westbound.
- The change cuts full loop transit time by around two weeks compared with routing via the Cape of Good Hope.
- Analysts caution that the decision does not signal a full-scale Red Sea return for the wider container market.
A leading container carrier has confirmed its INDAMEX service will return to Suez Canal transits on both fronthaul and backhaul rotations between South Asia and the US East Coast. The first full loop via Suez is scheduled to depart mid-January, marking a structural change to the service rather than an isolated diversion.
Industry data shows the Suez routing shortens total round-trip duration to around 77 days, roughly two weeks faster than detours through the Cape of Good Hope.
A Step Forward But Not a Full Red Sea Comeback
Analysts note that while several carriers have tested occasional transits in recent months, this is the first instance of a consistent pro forma schedule for this service. However, the broader container sector remains cautious, with some operators yet to set return timelines and others awaiting insurance clearance.
Despite the latest move, traffic through the Suez Canal remains far below pre-crisis levels. Ship passage counts fell sharply after security risks escalated in late 2023, and concerns continue over the availability, intent, and opportunity of regional actors to target merchant vessels.
Market Impact: Faster Loops, Capacity Questions
The shorter cycle time means the service will eventually operate with fewer vessels, providing a preview of what could happen if more carriers resume Red Sea transits. With spot freight rates already down more than 50% on major east-west routes compared to last year, analysts warn that a sudden return of capacity could intensify rate pressure.
Some shipowners may benefit from improved fleet efficiency, but a broader market shift could push freight pricing closer to loss-making levels unless demand conditions improve.
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Source: Xeneta
