Most of the services from the top 10 container lines have diverted their routes via the Cape of Good Hope, anticipating minimal impact from the escalation of Houthi attacks, according to analyst Linerlytica. Only CMA CGM continues to transit the Suez Canal with an 11-ship service, ranging between 9,000 and 11,000 TEU, in partnership with Ocean Alliance partners COSCO, OOCL, and Evergreen. reports Seatrade Maritime.
Impact on the Container Market
Only 72 of the 513 ships operating on Asia-Europe trades still use the Suez Canal, primarily smaller operators from China, Russia, Singapore, Turkey, and UAE. Increased tensions in the region, including Yemen’s attack on Tel Aviv and Israel’s retaliation at Hodeidah, have not altered containership movements in the Red Sea region. All major carriers on the Asia-Europe trade have diverted their ships to the Cape route, except for CMA CGM, which continues to operate 11 boats on its Asia-Med Phoenician Express (BEX2) service via the Suez/Red Sea route. This service calls at ports in China, South Korea, Singapore, and Malaysia, and transits the Suez Canal to call at ports in Italy, Slovenia, Croatia, Lebanon, Egypt, and the UAE.
The decline in container vessels transiting Suez has significantly impacted the Suez Canal Authority (SCA)’s revenue. The SCA reported a $2.2 billion fall in revenue for the financial year ending in April 2024, compared to $9.4 billion the previous year. According to SCA head Osama Rabie, the number of ships transiting the canal fell to 20,148 in 2023/2024 from 25,911 the year before.
The Suez Canal, a key source of foreign currency for Egypt, has seen efforts to boost its revenues, including a 2015 expansion. However, revenue recovery seems unlikely shortly as the conflict in Gaza risks spreading into Lebanon and Yemen, with regional groups supporting the Palestinian cause becoming increasingly active.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Seatrade Maritime
