Even if a ceasefire is reached between Israel and Hamas, shipping giant Hapag-Lloyd doesn’t expect commercial vessels to resume using the Suez Canal anytime soon. This is due to concerns lingering over Houthi rebel attacks in the Red Sea.
The comments from Hapag-Lloyd, the world’s fifth-biggest shipping firm, follow news of a potential ceasefire agreement. However, the company spokesperson highlights that even if the fighting stops entirely, there’s no guarantee of immediate safety for cargo ships in the Red Sea.
Disruptions caused by the attacks have already significantly impacted commercial shipping. According to Clarkson Research, traffic through the Red Sea has dropped by about 70% compared to early December last year. As a result, ships are being rerouted to sail thousands of miles around Africa, causing delays and increased costs. Even after the Suez Canal reopens, Hapag-Lloyd anticipates a period of at least four to six weeks to rearrange schedules and restore normal operations.
Source: G-Captain