Asian port congestion drives return to Suez Canal route

Asian port congestion drives return to Suez Canal route
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Port congestion in Asia and capacity constraints are contributing to decisions by some container carriers to resume sailings through the Red Sea and Suez Canal, shortening the route between Asia and Europe. According to Linerlytica, Asian port congestion has reached 4.3 million TEU, exceeding the 4.0 million TEU recorded as stranded during the peak of the Covid pandemic. Climate disruptions, including El Niño and storms, have contributed to delays and reduced available capacity. Diversions around the Cape of Good Hope are absorbing between 5 and 7 per cent of global container shipping capacity, equivalent to 1.7 million to 2.4 million TEU. Some carriers have consequently begun testing the shorter route through the Bab el Mandeb Strait, Red Sea, and Suez Canal despite the continuing risk from hostilities in the Middle East and the Iran-backed Houthi Movement off Yemen. CMA CGM has made 15 transits through the Suez route, compared with 11 by Maersk. The two carriers, along with MSC, have operated vessels in both northbound and southbound directions. Wan Hai Lines and Cosco Shipping have so far made only northbound transits, while Hapag-Lloyd remains reluctant to return to the route. MSC has returned its Jade container service to the Suez Canal and Bab Al Mandab route, with a call at King Abdullah Port in Rabigh, according to the Saudi Ports Authority (Mawani). The Jade service has capacity of up to 15,000 TEU and connects King Abdullah Port with markets in Europe and Asia. European calls include Fos-sur-Mer in France, Barcelona and Valencia in Spain, and Gioia Tauro in Italy. Asian calls include Singapore, Nansha, Yantian, Xiamen, Ningbo, Shanghai, and Qingdao in China, as well as Busan in South Korea. Despite capacity being tied up by congestion and longer Cape routings, freight rates on Asia-Europe routes have not recovered, according to Linerlytica. The alternative North Sea Route has also received what the consultant described as a "Lukewarm response" from shippers. Saudi Arabia has meanwhile been expanding connections across its Red Sea port network. In May, Mawani introduced the Red Sea Express at King Fahd Industrial Port in Yanbu, connecting Jeddah Islamic Port and King Fahd Industrial Port with Ain Sokhna Port in Egypt and Aqaba Port in Jordan. Source: SeatradeMaritimeNews Frontpage photo: © MSC Source: logisticsmiddleeast.com Publication date: Thu 3 Sep 2026

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