More Asia–Europe Services Return To Suez Despite Rising Tensions
Despite recently rising tensions around the Bab el-Mandeb Strait, the Gemini network has announced that four Asia–Europe services are returning to the Suez Canal this month.
Gemini carriers announced that the first vessels are scheduled to enter the revised rotations from 19 September. Two of the services include direct calls at London, making the decision particularly relevant to UK importers and exporters.
Routing vessels through the Red Sea and Suez Canal removes the lengthy diversion around the Cape of Good Hope, potentially reducing transit times between Asia and Northern Europe by 10-14 days. It should also help the Gemini network improve schedule efficiency and reduce the additional fuel consumption associated with the longer route.
However, the timing is notable because security concerns in the region have recently intensified. Houthi forces have made advances along Yemen’s western coastline, closer to the strategically important Bab el-Mandeb Strait, while missile and drone attacks against targets in Saudi Arabia have prompted retaliatory military action.
These developments raise the possibility of renewed threats to commercial vessels using the southern entrance to the Red Sea, which suggests this decision could be reversed if the risks become unacceptable.
Disruption to Middle Eastern oil production and transport routes, which have intensified as a result of Houthi action, has contributed to a sharp rise in global oil prices. Brent crude has recently traded above $100 per barrel, despite easing slightly in the last couple of days.
As a result, further fuel surcharges are likely to be introduced or increased across ocean, air and road freight during the coming weeks. Atlantic Pacific will continue monitoring developments and advise customers of any significant changes affecting routes, transit times or transport costs.
