Major Container Alliances Resume Westbound Voyages via Suez Canal
Four major container shipping alliances have begun operating regular westbound voyages between Asia and Northern Europe via the Suez Canal, with a full return to transits expected by 2027.
Four of the world's largest container shipping alliances have begun operating regular westbound voyages between Asia and Northern Europe via the Suez Canal starting this week, according to Linerlytica in its weekly newsletter.
These alliances include Premier Alliance, Gemini, Ocean Alliance, and MSC, with expectations that vessels exceeding 4,000 TEU capacity will soon surpass 50 weekly transits.
Linerlytica projects a full return to Suez transits by the first quarter of 2027, noting that ONE and HMM are next in line to switch to the route.
It explained that capacity forecasts have turned negative as more container ships return to the Suez Canal, because this return eases pressure on rates that surged during the period of rerouting around the Cape of Good Hope.
What Do These Terms Mean?
Suez Canal: An Egyptian waterway connecting the Red Sea to the Mediterranean Sea, considered the fastest maritime route between Asia and Europe.
Twenty-Foot Equivalent Unit (TEU): A unit of measurement for container ship capacity, equivalent to a standard 20-foot container.
Shipping Alliance: An agreement between several shipping lines to operate joint services and share vessels and capacity rather than competing on the same route.
Carrying Capacity: The total space available for moving cargo on shipping routes, an increase of which beyond demand lowers freight rates.
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