Premier Alliance, made up of ONE, HMM and Yang Ming, is preparing to route its FE1 Asia-North Europe service back through the Suez Canal starting this month, joining a wider industry shift away from the longer Cape of Good Hope diversions that carriers adopted after the Red Sea crisis began. The move marks the alliance's first departure from Cape routing since it switched in January 2024, and adds to a pattern of carriers gradually resuming Suez transits since May.

Which Vessels Are Moving First

The first ship to make the switch is the ONE Continuity, an 8,100 teu vessel, which is scheduled to depart Laem Chabang in October before transiting the Suez Canal and arriving at Rotterdam as its first European port call. Other FE1 vessels, including the NYK Venus, ONE Hamburg and NYK Orion, are also scheduled for Suez transits after leaving Asia later in the year. Separately, Cosco is reportedly preparing to send a vessel westbound through Suez for the first time in more than two years, after running several eastbound transits since mid-September. That westbound sailing is part of the Ocean Alliance's Asia-North Europe network.

A Broader Industry Shift

Premier Alliance has been one of the last holdouts as rival alliances gradually rebuilt Suez services. Gemini partners Maersk and Hapag-Lloyd have already been increasing their own return, with Hapag-Lloyd confirming additional services switching back this month. Liner analysts describe the pace of return as accelerating: one tracking firm counted the busiest week for Suez containership transits since 2024, with roughly 30 large ships passing through in a single week. Since May, more than 140 containerships, representing over 2 million teu of capacity, are estimated to have made a lasting switch back to Suez routings.

Why Carriers Are Returning Now

Security concerns remain the main factor slowing a full normalization. Demand for naval escorts through the southern Red Sea has grown to a point where the European naval mission providing protection has acknowledged it cannot meet every request for an escort. Reports have also pointed to a letter reportedly sent by Houthi rebels to the EU, in which the group said it would not target European cargo vessels, which may be feeding into carriers' renewed confidence in the route.

Capacity and Rate Pressure

The return to Suez is significant because Cape diversions have been absorbing a large share of the containership capacity added to the global fleet since the pandemic. With the orderbook now representing a very large share of the existing fleet, a fuller return to the shorter Suez route risks releasing substantial capacity back into a market that may not need it. Spot rate assessments have already shown weakness on Asia-North Europe and Asia-Mediterranean lanes, with part of the decline attributed to the gradual restoration of capacity as ships resume Suez routings. At the same time, congestion is currently absorbing a meaningful share of global fleet capacity, and some analysts expect it could take several months for that disruption to fully clear.

What This Means for Shippers

For shippers, importers and exporters relying on Asia-Europe trades, the shift back to Suez should eventually translate into shorter transit times compared with Cape of Good Hope routings, since the canal route is significantly quicker. However, the transition is happening gradually and vessel-by-vessel, so cargo owners should expect schedule changes and revised arrival dates on bookings tied to the affected services over the coming weeks. Freight rates on these lanes have already begun softening as more capacity effectively returns to the market, and further rate pressure is possible if the pace of Suez returns continues. Shippers and forwarders should keep a close eye on carrier schedule updates and container tracking data, since port rotations, transit days and estimated arrival times may shift as more vessels transition from Cape routings back to the canal.

Sources: splash247.com, theloadstar.com