Mainline container carriers are moving to bring their Asia-North Europe and Asia-Mediterranean services back through the Suez Canal, reversing a diversion to the Cape of Good Hope that has been in place since late 2023. Taiwan's Evergreen is rejoining its Ocean Alliance partners on Suez routings this week, while Yang Ming and HMM are set to follow with their Premier Alliance partners next month.

Which Services Are Returning First

Evergreen will send its 16,556 teu Ever Eon and Ever Edit through the canal eastbound on the Ocean Alliance's NEU7/CES service in early November, followed by the 20,124 teu Ever Gifted on the MD2 service later in the month. The Premier Alliance's Asia Mediterranean 1 (MD1) service will resume Suez transits next month, with Yang Ming's 11,714 teu YM Trust starting the revised rotation. The new routing adds a call at Sokhna to serve Asia-Red Sea cargo and will turn in 84 days, using 12 ships of 11,700 to 14,000 teu, down from 16 vessels currently needed on the longer Cape route.

Why Carriers Are Going Back Through Suez

Shipping lines had rerouted around the Cape of Good Hope after Houthi forces began attacking vessels in the Red Sea in late 2023, following the escalation of Israel's conflict with Palestine. Carriers are now returning to Suez because of tighter vessel capacity, competitive pressure among operators, and a recent easing of regional security risk. According to Linerlytica, all three major carrier alliances, along with MSC, are expected to make a full return to Suez transits by the first quarter of 2027. HMM said the decision was made collectively within the Premier Alliance after a full review of market conditions and safety factors. Israeli carrier Zim remains the one major holdout still using the Cape route, a choice that may be linked to its nationality.

Gemini and Other Alliance Moves

The Gemini Cooperation, formed by Maersk and Hapag-Lloyd, has also signalled it will fully resume Suez transits by early 2027 and has already launched a new Asia-Mediterranean service routed through the canal. Separately, carriers are expanding Red Sea coverage to take advantage of rising rates between Shanghai and the Persian Gulf. Evergreen is relaunching a China-Red Sea service in mid-November, initially using four ships of 7,000 to 9,000 teu on a fortnightly schedule.

Capacity Pressure in the Middle East

MSC has extended its Far East-Indian subcontinent Shikra service to reach Khor Fakkan in the UAE and Sohar in Oman, responding to strong demand and high freight rates in the region despite heavy port congestion. The expanded rotation will use up to 15 ships, some as large as 24,000 teu, turning in 15 weeks. Waiting times at Khor Fakkan are already running at more than two weeks for vessels to berth, meaning the biggest ships on this route face significant delays.

What This Means for Shippers and Cargo Owners

The shift back to Suez should shorten transit times on Asia-Europe and Asia-Mediterranean lanes compared with the Cape route, but it is also adding downward pressure on freight rates, since recent price increase attempts have not held and further declines are expected as capacity growth outpaces demand. Shippers moving cargo to the Middle East and Red Sea region should plan for congestion-related delays, particularly at Khor Fakkan, where berthing waits already exceed two weeks. Those booking on revised rotations, such as MD1 or the new Red Sea services, should check updated port calls and transit times, since schedules and capacity on these lanes are still being adjusted as more carriers return to the canal over the coming months.

Sources: theloadstar.com