Red Sea shipping disruptions impact global freight market
Time:Wed, 19 Feb 2025 09:42:03 +0800
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Container vessels sailing through the Red Sea are a key variable in freight costs for international businesses. Supply and demand will have a big change from this factor. The Hamas turmoils had been causing the shipping line to skip this route but were forced to sail much longer through the Cape of Good Hope.
A recent survey conducted by Drewry shows that 54% of respondents believe that Suez Canal transportation and Red Sea Routes will be restored by the end of 2025, with 29% of respondents believing that a return to the Suez Canal and Red Sea routes has to wait until 2026.
The survey is with more than 300 respondents, of which 34% were shippers, 13.7% were freight forwarders, and 10% were terminal operators or people related to the port industry.
However, the ceasefire agreement between Israel and Hamas that has just been reached is facing the possibility of collapse with uncertainties. Therefore, the key is for the ceasefire to last, otherwise, it is still too early to talk about returning to the Red Sea sailing.
