The world’s second-biggest ocean container line continues to test a return to a key Middle East trade route as events in Iran may signal a change for the better on the Red Sea.
The company announced that the U.S.-flag Maersk Denver, operated by the Danish carrier’s American-based Maersk Line subsidiary, on Jan. 12 successfully completed a two-day voyage through the Suez Canal and Red Sea.
The Maersk Denver operates on Maersk’s MECL service connecting Charleston, Savannah, Houston, Norfolk and Newark in the U.S. with the Mediterranean, Middle East and India.
Maersk (MAERSK-B.CO) has been taking what it calls a “stepwise approach” regarding a return to the Red Sea-Suez Canal, a shortcut connecting Asia with Europe, the Mediterranean and North America. Since late 2023 the region has been under siege by Houthi terrorists in Yemen, who have attacked merchant shipping in solidarity with Palestinians.
While shipping lines initially saw billions of dollars in windfall profits diverting ships away from the Red Sea on longer, costlier voyages around the tip of Africa, President Donald Trump’s tariff war and a shifting global trade landscape has weakened import demand to the U.S. and depressed ocean shipping rates, hurting carriers’ profits.
China and Iran have reportedly been sponsoring the Houthis with money and weapons. But the Houthis’ aggression has been weakened as Iran redirects resources toward its own domestic issues, which exploded last week as the religious government violently confronted growing protests.
A collapse of the Iranian regime could shut off the Houthis’ military supply line, and lead to a re-opening of the Red Sea to global shipping. Analysts say that a full return to the Suez Canal would be a mixed scenario, normalizing vessel rotations but adding 2 million containers’ worth of capacity back into a weakened market. Falling prices have also been aggravated by ongoing fleet expansion by the largest carriers.
“The safety of our crew, vessels and cargo remains of utmost importance to us, and the necessary safety measures were applied during transit. Customers with cargo on this vessel have been informed directly,” Maersk said in a release, adding it will gradually resume navigation along the Suez Canal and Red Sea. It announced no additional sailings.
Find more articles by Stuart Chirls here.
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