Following the announcement of a Gaza ceasefire deal, industry experts are questioning whether the Suez Canal, a historically critical pathway for major global trade routes including Europe-Asia trade, will resume its role in transporting billions of dollars worth of commodities.
Insights from international news agencies and stakeholders, shed light on the prevailing uncertainty. It’s not likely the industry will see a large shift back to the Suez Canal in the short term, which previously accounted for 30% of global containerized trade before the conflict arose. This is primarily due to two reasons: challenges related to securing cargo insurance given perceived high risks and time constraints given it takes weeks or months to implement a new ocean shipping plan. Even if carriers decide to revert to the old route, it will take some time to implement, especially with ongoing carrier alliance reshuffling disrupting schedules.
When vessels initially rerouted to the Cape of Good Hope, we assisted thousands of customers affected by the extended transit times. If another shift occurs, we will continue to provide support and alternative options to our customers based on their needs and goals. The future use of the Suez Canal for trade remains uncertain, but uncertainty is a common aspect of global shipping. Our teams manage 6,000 ocean and air shipments daily, so we are well-versed and prepared for such changes.”
As shippers await further developments, "Advises discussing inventory levels and potential impacts on storage space in the event of future changes in transit times. “For example, if vessels return to the Suez Canal, some shippers could experience goods arriving in close succession as the transition begins.”
