Asian port congestion drives return to Suez Canal route

Severe port congestion in Asia, currently reaching 4.3 million TEU, is driving some container carriers to resume sailings through the Suez Canal and Red Sea to shorten routes between Asia and Europe. This congestion level exceeds the peak recorded during the Covid-19 pandemic.

Climate disruptions, such as storms and El Niño, have further contributed to delays and reduced capacity. While many vessels have been diverted around the Cape of Good Hope—absorbing between 5% and 7% of global container shipping capacity—some carriers are testing the shorter route through the Bab el Mandeb Strait despite ongoing security risks in the Middle East.

Major carriers such as CMA CGM and Maersk have conducted transits through the Suez route, and MSC has returned its Jade container service to the canal, connecting King Abdullah Port in Saudi Arabia with markets in Europe and Asia. Despite these shifts and the capacity constraints, freight rates on Asia-Europe routes have not yet recovered.