Maersk is ready to resume the Red Sea route! However, it is difficult for freight rates to fall back before the year

Previously, Maersk announced on December 15 that it was suspending the passage of its vessels through the Bab el-Mandeb Strait due to attacks on its vessels. 

The Houthi attacks have caused severe disruptions to shipping in the Suez Canal and the Red Sea, one of the most important arteries for trade in oil, gas, grains and consumer goods between Europe and Asia.

"As of December 24, we have received confirmation that the previously announced Prosperity Guardian (OPG) multinational security initiative has been formally established and deployed," Maersk said in a statement. Maritime trade through the Red Sea and the Gulf of Aden will be carried out, and the Suez Canal will be able to reopen as a gateway to Asia and Europe. "With the implementation of the Prosperity Guardian initiative, we are preparing to allow ships to resume navigation through the Red Sea in both directions to the east and west."

Maersk said it would announce more details in the coming days. But the company noted in a customer consultation that "the overall risk in the area has not been eliminated" and that it could "initiate a diversion program" again if there are further safety concerns.

Earlier, Maersk announced on December 15 that it was suspending the passage of its vessels through the Bab el-Mandeb Strait due to attacks on its vessels. On December 19, Maersk had said that it would adopt a route that would detour through the Cape of Good Hope and would impose a container surcharge on goods from Asia to compensate for the additional costs of increased mileage.

Industry insiders said that there are still uncertainties in Maersk's resumption of the Red Sea route, and even if it is restored, it is planned to gradually recover in batches, which still has a long-term impact on the liner shipping service network with complex structure and serious delays. Moreover, the current shipping schedule is still insufficient, and the container freight rate seems to show no signs of rapid decline in the short term.

In terms of spot freight rates, take the route from Shanghai to Rotterdam as an example. Although at the end of December this year, there are still shipping companies that quoted only $2,000/FEU, and the highest price was $4,000/FEU, but from January next year, the freight rate has risen significantly. Specifically, ONE's voyage departing on January 11 next year is the lowest at US$4,725/FEU, while the same day departing on the same day is priced at US$8,040/FEU.

A freight forwarder said: "Under normal circumstances, due to the Chinese New Year, many factories are basically closed after the middle of the year, and shipments are concentrated. The shipping schedule was tight before the year, especially in the first half of January, so it is unlikely that the freight rate will fall before the year. ”

Some institutions said that Maersk's return to the Red Sea is a disturbance to the market, although it will have an impact on sentiment in the short term, but the Red Sea situation continues to be tense, and it is necessary to pay attention to how many liner companies will follow Maersk to return to the Red Sea.

Maersk said that the company hopes to bring greater predictability and supply chain efficiency to customers, and will confirm the details of the next phase of operations as soon as possible.

"Although the current security measures to ensure the passage of ships through the Red Sea (Gulf of Aden region) are in place, the overall risks in the area have not been eliminated at this stage. If the safety of the crew is threatened, Maersk will not hesitate to reassess the situation and reactivate the detour plan again. Maersk said.