Adm. Rabiee, Chairman of SCA that the continued transit of mega container ships through the Suez Canal provides positive indicators regarding the gradual return of major shipping lines

Maersk and Hapag-Lloyd, partners in the Gemini container shipping alliance, will reinstate the AE15 service along the Suez Canal route. The move was announced in a statement released today by the Danish company. Connecting Asia, the Mediterranean and Europe, the service will follow the following rotation: Qingdao – Kwangyang – Ningbo – Tanjung Pelepas – Port Said – Damietta – Colombo – Singapore.

The beginning of a staged return to the Suez Canal trade route,

"The decision to work with Hapag-Lloyd was made after a thorough review of the security situation in the Red Sea area, and it signifies the beginning of a staged return to the Suez Canal trade route," stated Maersk, emphasising that it will "keep a close eye on the security developments in the Middle East region." The company added that any further changes regarding Gemini will depend on the situation in the Red Sea and the absence of any escalation of conflicts in the area, while "Plan B" options—reverting to the route via the Cape of Good Hope—will remain in place should security conditions deteriorate.

Related: Maersk appoints Scott Elliott as Regional President, Asia Pacific

The announcement caused shares in the two companies

Reuters reported that the announcement caused shares in the two companies—listed on the Frankfurt Stock Exchange and Nasdaq Copenhagen, respectively—to fall by 6.6% and 3.8% shortly after the news broke, reflecting expectations of an imminent drop in container freight rates, which are currently surging.

The first step paving the way for a full return to the Red Sea

In comments to the press agency, Jyske Bank analyst Haider Anjum described the initiative as “the first step paving the way for a full return to the Red Sea by the end of the year”. He added that, combined with the prospect of new vessel deliveries in 2027 and 2028, this move should put pressure on freight rates and, consequently, shipping companies' earnings.

Houthi attacks on vessels near the Bab el-Mandeb Strait

In late 2023, Houthi attacks on vessels near the Bab el-Mandeb Strait, which were anti-Israel, prompted shipping companies to reroute vessels around South Africa. This led Maersk to make several attempts to return to normal operations. The most recent announcement came in early February, when the Danish carrier revealed plans to resume Suez transits for vessels on the IMX-ME11 service and the MECL link to North America. However, on the eve of US and Israeli strikes against Iran, Maersk reversed its decision, announcing a temporary return to the route around Africa due to 'unforeseen constraints' in the Red Sea.

The Suez Canal witnessed the transit of the giant CMA CGM Saint Germain

It is worth noting that on Friday, the Suez Canal witnessed the transit of the giant container ship CMA CGM Saint Germain, one of the world's largest. This was the ship's first voyage through the canal, as part of a northbound convoy travelling from Morocco to Malaysia.

The ship, which is owned by the French shipping line CMA CGM, measures 399.9 meters in length, 61.3 meters in width, and has a draft of 16 meters. With a gross tonnage of 238,000 tons, it can carry up to 23,876 TEUs (twenty-foot equivalent units) and is equipped with an 18,600-cubic-metre fuel tank to run on liquefied natural gas (LNG), enabling it to undertake long-distance voyages between Europe and Asia. It operates on the Ocean Alliance's NEU5 FAL3 service and serves the trade route between the Far East and northwest Europe.

 A positive indicator of the gradual return of major shipping lines

Admiral Osama Rabie, Chairman of the Suez Canal Authority (SCA), stated that the continued transit of giant container ships through the Suez Canal is a positive indicator of the gradual return of major shipping lines. He emphasised that the canal is fully prepared to welcome the world's largest and most advanced vessels, and that it continues to play a vital role in facilitating global trade and maintaining the sustainability of supply chains.

Enhance the level of maritime services to meet customer demands 

The Chairman of the Authority elucidated that the Authority is persisting in implementing its strategy to enhance the level of maritime services to meet customer demands by proffering a range of new, superior services heretofore unavailable. These include marine salvage, ship maintenance and repair, marine ambulance services, and refuelling and crew change services. This will strengthen the Suez Canal's competitiveness and solidify its leading position as one of the world's most important trade routes.

#Admiral Osama Rabie #Suez Canal # CMA CGM Saint Germain #Maersk #Hapag-Lloyd # Gemini # Asia-Mediterranean service