Suez Canal trade faces slow recovery despite ceasefire
MIDDLE EAST – The ceasefire between Israel and Hamas has raised hopes for stability in the region, but logistics experts remain skeptical about the immediate return of fresh produce trade through the Suez Canal to pre-conflict levels.
Persistent risks and security concerns have kept the industry cautious.
“It’s not likely the industry will see a large shift back to the Suez Canal in the short term,” said Matt Castle, vice president of global forwarding at logistics group CH Robinson.
The Suez Canal, a vital route for global trade, has seen a significant drop-in activity, with the number of container ships passing through in 2024 down by 75% compared to the previous year, according to Project44 data.
Shipping companies are expected to adopt a measured approach before resuming operations in the area. “It’ll definitely be a case of trialing the route,” stated Craig Poole, managing director at Cardinal Global Logistics. He emphasized the importance of confirming the ceasefire’s stability before making long-term adjustments.
Maritime security sources echoed this sentiment, suggesting that firms would rely on test voyages to evaluate the situation.
“As you can understand, nobody’s in a hurry to change things from tomorrow,” an executive with a major container ship company told TradeWinds. “Redirecting towards Suez will come, but gradually.”
The conflict’s impact on fresh produce exports has been profound. Attacks on commercial vessels by Houthi rebels in Yemen have contributed significantly to the decline in Suez Canal traffic.
These actions, reportedly carried out in solidarity with Palestinians affected by the Gaza conflict, have forced shipping companies to seek alternative routes.
Egypt, the world’s third-largest exporter of fresh oranges, has faced major disruptions. The shortage of Egyptian oranges in Asian markets has forced exporters to redirect shipments to the European Union and the Middle East.
This shift has led to longer travel times, with vessels from Shanghai to Rotterdam now taking an additional 12 days to reach their destinations.
Houthi spokesperson Mohammed al-Bukhaiti suggested that peace in the region could restore stability.
“If Israel stops the aggression in Gaza, and if the US, UK, and Israel stop the aggression against Yemen, the Houthis will stop their operations, including attacks against navies and commercial ships,” he told Al Jazeera.
Suez Canal trade faces slow recovery despite ceasefire
MIDDLE EAST – The ceasefire between Israel and Hamas has raised hopes for stability in the region, but logistics experts remain skeptical about the immediate return of fresh produce trade through the Suez Canal to pre-conflict levels.
Persistent risks and security concerns have kept the industry cautious.
“It’s not likely the industry will see a large shift back to the Suez Canal in the short term,” said Matt Castle, vice president of global forwarding at logistics group CH Robinson.
The Suez Canal, a vital route for global trade, has seen a significant drop-in activity, with the number of container ships passing through in 2024 down by 75% compared to the previous year, according to Project44 data.
Shipping companies are expected to adopt a measured approach before resuming operations in the area. “It’ll definitely be a case of trialing the route,” stated Craig Poole, managing director at Cardinal Global Logistics. He emphasized the importance of confirming the ceasefire’s stability before making long-term adjustments.
Maritime security sources echoed this sentiment, suggesting that firms would rely on test voyages to evaluate the situation.
“As you can understand, nobody’s in a hurry to change things from tomorrow,” an executive with a major container ship company told TradeWinds. “Redirecting towards Suez will come, but gradually.”
The conflict’s impact on fresh produce exports has been profound. Attacks on commercial vessels by Houthi rebels in Yemen have contributed significantly to the decline in Suez Canal traffic.
These actions, reportedly carried out in solidarity with Palestinians affected by the Gaza conflict, have forced shipping companies to seek alternative routes.
Egypt, the world’s third-largest exporter of fresh oranges, has faced major disruptions. The shortage of Egyptian oranges in Asian markets has forced exporters to redirect shipments to the European Union and the Middle East.
This shift has led to longer travel times, with vessels from Shanghai to Rotterdam now taking an additional 12 days to reach their destinations.
Houthi spokesperson Mohammed al-Bukhaiti suggested that peace in the region could restore stability.
“If Israel stops the aggression in Gaza, and if the US, UK, and Israel stop the aggression against Yemen, the Houthis will stop their operations, including attacks against navies and commercial ships,” he told Al Jazeera.