Kuehne + Nagel Expects Container Lines to Return to Suez in 2027

Stefan Paul, CEO of the Swiss shipping company Kuehne + Nagel, said that most container shipping lines could return to sailing through the Suez Canal in late Q1 or early Q2 2027, according to Reuters.

Speaking on Thursday after the company raised its 2026 earnings forecast for the third time this year, Paul added that "there is a clear intention among shipping partners to return to the route," but warned that geopolitical conditions remain volatile.

Most shipping operators abandoned the Asia-Europe route via the Suez Canal in November 2023 following Houthi attacks in the Red Sea, forcing vessels to detour around Africa. Return plans early this year were delayed following US and Israeli strikes on Iran in late February.

Paul noted that rising oil prices increase the attractiveness of shorter voyages, but said reopening the route "will not materially impact customer demand." Maersk has resumed select services through the Suez Canal, and analysts believe that a gradual return to Red Sea routes is unlikely to materially affect earnings this year.

What do these terms mean?

Freight Forwarder: A company that organizes the transportation of goods for its clients through various shipping lines, and typically does not own the vessels.

Container Lines: Companies that operate vessels dedicated to transporting goods in containers along regular routes and schedules.

First Quarter: A three-month period starting in January and ending in March, used in financial reporting and operational planning.