Houthi gains deepen risk as carriers restore Red Sea services
Container carriers Red Sea return is lowering some rates but increasing exposure to potential new disruptions. The post Houthi gains deepen risk as carriers restore Red Sea services appeared first on FreightWaves .
The Houthis' territorial gains in the Red Sea are heightening risks as container lines resume services through the strategic waterway, according to analysis firm Freightos. Despite the increased security threat, some carriers are still boosting their transits through the Red Sea and Suez Canal, particularly for Asia-Mediterranean routes.
Roughly 25% of Asia-Europe capacity is now expected to use the Red Sea in September, with 35% of headhaul and 50-60% of backhaul capacity expected to pass through Suez. However, the situation remains precarious, with analysts warning that measures used to counter energy-price shocks may be losing effectiveness as oil and bunker fuel prices approach May levels.
The strategic port and island seized by the Houthis near the Bab el-Mandeb Strait is a critical maritime chokepoint, linking the Red Sea to the Gulf of Aden and the Suez Canal. This development comes as some observers caution that the effectiveness of previous measures to mitigate energy-price shocks may be waning, with oil and fuel prices climbing back toward May levels.
While some return to the Red Sea route is underway, capacity is increasing more slowly on Asia-North Europe services, with only about 6% of headhaul and 30% of backhaul capacity having resumed the route. The shift could still benefit carriers by shortening voyages and reducing the number of ships required for a weekly network, but only if the security situation remains stable.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
