Services return to Suez, security concerns remain, report says

MORE shipping lines are resuming service through the Suez Canal instead of diverting ships all the way around Africa’s Cape of Good Hope, US logistics company C H Robinson reports.

In its monthly freight update, it noted:

• October had begun with a temporary lull during the 1–7 October Golden Week, followed by a rebound as factories reopened and export cargo returned.

• Technology-related freight remained one of the strongest demand drivers: servers, semiconductor equipment, data centre components, and other high-value electronics continued to generate significant Trans-Pacific volume.

• New consumer-device launches were adding another layer of time-sensitive cargo, while general freight was expected to increase more gradually as manufacturers and retailers bring in inventory ahead of early Black Friday sales.

The report noted research from Sea-Intelligence estimating that 27% of September Asia–Europe capacity in both directions was routing through the Red Sea and Suez Canal, although the return remained less advanced on Asia-to-Europe services.

“Shorter round trips can release effective capacity without adding vessels, but the benefit remains service-specific and reversible if Red Sea conditions deteriorate,” C H Robinson stated. “A broader recovery would mean carriers using the Suez route consistently, publishing shorter transit times, accepting bookings on those services, and adjusting surcharges and vessel deployments accordingly.”

The report predicted routing would remain “inconsistent in the near term”.

“One ocean carrier may offer a shorter Suez Canal service while another continues diverting around the Cape [of Good Hope].

“Shippers should verify the complete routing, connection points, and published schedule rather than assume that a quoted transit time reflects a broader return to Suez,” it stated.

“Regional security conditions, including military actions in West Asia/the Middle East more generally and specifically in and around the Strait of Hormuz, remain an important watchpoint as carriers evaluate whether additional services can return safely and consistently.”

The report noted that October had begun with “ocean markets following distinctly different paths”.

The report noted that all scheduled vessel capacity was not necessarily usable.

“Global port congestion is absorbing roughly 12% of vessel capacity, a four-year high, with significant impacts across East Asia, North Europe, and the Indian Subcontinent.

“Schedule reliability has also fallen sharply as port congestion, vessel bunching, typhoons, Middle East conditions, and Panama Canal restrictions affect ocean networks.”