Since the declaration of the ceasefire between Israel and Hamas, more and more ships are once again sailing via the Suez Canal. According to the Suez Canal Authority (SCA), at least 47 ships that had previously planned to sail via the Cape of Good Hope have still opted for the shorter route via the Suez Canal.

The increase in shipping traffic through the canal comes after months of disruptions caused by attacks by Houthi rebels in the Red Sea. Many shipping companies diverted to a longer route around Africa to avoid the risks. Now that the rebels have announced the cessation of their attacks, confidence in the safety of the route through the Suez Canal seems to be slowly recovering.

Cautious return, further growth expected

Although some shipping companies, such as Maersk, are still opting for the route through Africa, the SCA expects shipping traffic through the canal to gradually normalize. According to top executive Osama Rabie, the situation will be largely restored by the end of March, with a full recovery by mid-year, provided the ceasefire in Gaza holds.

Implications for the logistics industry

The temporary disruption of shipping routes had a significant impact on transit times and logistics costs. Now that the situation is stabilizing, companies can benefit from shorter transit times and lower transportation costs.

At Van der Helm, we closely follow developments in global shipping. We advise clients on the most efficient transport routes and help companies make their supply chains run as smoothly as possible. Want to know how these changes will affect your logistics? Contact us for strategic advice.