Carriers boost Red Sea Suez transit as Houthi seizure deepens route risk
Carriers are increasing transits through the Red Sea and Suez Canal, with Sea Intelligence estimating that more than one-quarter of Asia-Europe capacity will use the route in September despite a widening Houthi threat on the Suez Canal route. The Iran-backed Houthis have seized a strategic port and island on the Bab el-Mandeb Strait, even as Asia-North Europe spot prices fell 3% to about $4,300 per FEU and Asia-Mediterranean rates dropped 12% to roughly $4,200 per FEU last week.
Analysts estimate that 2 million container units' worth of capacity could return to the Mideast trade lane. On the Asia-Mediterranean trade, roughly 35% of headhaul capacity and 50% to 60% of backhaul capacity are expected to move through the Suez Canal. The shift is significant because the Suez route shortens voyages relative to diversions around Africa. Congestion at North European hubs may also be influencing carriers' willingness to return to the Red Sea.
Before seizing the port and island, the Yemen-based Houthi militia had already shown it could attack or deter merchant vessels in the Red Sea. The group’s advance followed an attack last week on a key Saudi oil pipeline, adding to worries that regional escalation could pressure oil and marine‑fuel markets. The shorter routing can help lines regain schedule time and deploy their fleets more efficiently
What we know
The Iran-backed Houthis have seized a strategic port and island on the Bab el-Mandeb Strait.
Sea Intelligence estimates that more than one-quarter of Asia-Europe capacity will transit the Red Sea in September.
Asia-North Europe spot prices fell 3% to about $4,300 per FEU and Asia-Mediterranean rates dropped 12% to roughly $4,200 per FEU last week.
Analysts estimate that 2 million container units' worth of capacity could return to the Mideast trade lane.
On the Asia-Mediterranean trade, roughly 35% of headhaul capacity and 50% to 60% of backhaul capacity are expected to move through the Suez Canal.