Maersk-affiliated ships will start making limited trips through the canal in early December, according to the SCA.
Following the signing of a strategic partnership with Egypt’s Suez Canal Authority (SCA), A.P. Moller-Maersk announced a phased return to Suez Canal transits starting in early December. This move could reduce pressure on global supply chains and shorten travel times between Asia and Europe. On November 25, Maersk CEO Vincent Clerc and SCA chairman Osama Rabie witnessed the announcement during a high-profile meeting in Ismailia.
The announcement represents a tentative reversal of a nearly two-year routing change by numerous carries, which saw ships take the longer Cape of Good Hope detour instead of the Red Sea and Suez Canal. Maersk has consistently emphasized crew safety as its top priority while keeping an eye on the ground security developments. The company started diverting ships in early 2024 after Houthi militant attacks raised security concerns in the Red Sea.
Maersk-affiliated ships will start making limited trips through the canal in early December, according to the SCA. If things stay stable, a gradual scale-up is anticipated. In order to rebuild trust in the East-West maritime corridor, the authority presented the action as the outcome of bilateral discussions and a strengthened strategic alliance. However, Maersk has emphasized a cautious, phased approach by stating that any resumption will be conditional and carried out “as soon as conditions allow”
The practical ramifications for international trade are immediate. Compared to the Southern Africa reroute, rerouting ships back through Suez results in shorter voyage distances and lower fuel costs, which can lower freight rates and increase shippers’ schedule reliability. The Suez Canal is still a vital route. In 2024, several carries rerouted, which had a significant impact on the authority’s revenue and traffic. Egyptian officials and analysts connected this disruption to revenue losses that year. Thus, restoring regular transits would benefit the canal’s finances as well as shipping companies.
However, there is still uncertainty. The security threat that led to the diversions in 2024-sttacks allegedly carried out by Houthi forces in Yemen-has not entirely disappeared and continues to be a crucial factor. The leadership of Maersk clearly linked any return to the sustainability of recent ceasefire developments and wider regional stabilization, indicating that the company will still have the ability to change routing in the event that the security situation worsens. This caution is indicative of a broader industry position: other major carries have made it clear that they won’t resume full Red Sea operations until risks have been proven to be reduced.
The return has geopolitical significance in addition to operational logistics. Egypt has a stake in restoring consistent canal traffic and has been actively promoting policies meant to reassure foreign carries. Cairo is attempting to reposition the Suez Canal as a secure, dependable route for international trade, as evidenced by the ceremony in Ismailia and the partnership’s public nature. For their part, shipping lines will weigh the need for specific security guarantees against business incentives.
The Maersk-SCA agreement could be a significant step toward normalizing one of the busiest maritime corridors in the world. Ahead of the busiest trading season in the northern hemisphere, the phased return could reduce shipping costs and shorten transit times if everything goes according to plan. The security guarantees will be the ultimate test, though as Maersk and its competitors continue to prioritize safety over profitability.
Furthermore, industry experts speculate that Maersk’s choice might serve as a gauge for broader market sentiment. Other carries might follow, hastening a more extensive realignment of international routes, if the second-largest container line in the world is successful in returning to Suez operations. In addition to improving shipping efficiency, this change might help supply chains that have endured numerous disruptions over the previous two years regain a sense of predictability.