Hapag-Lloyd sees prolonged Red Sea re-routings regardless of ceasefire

HAMBURG : Hapag-Lloyd told Reuters that the German shipping company does not expect the Suez Canal to be open again anytime soon, despite a recent ceasefire between Hamas & Israel.

The world’s fifth largest shipping company made the comments after Palestinian groups welcomed an U.N. Security Council Resolution backing a proposal to end violence in Gaza.

Hapag-Lloyd shares and Danish counterpart Maersk’s shares fell 5-6% on this news. The spokesperson stated that “even if a ceasefire were to occur now, it does not mean the Houthi’s attacks would stop immediately.”

Hapag-Lloyd said that it will take four to six weeks for the operations to be back to normal even after the Suez Canal reopens for transit. The global shipping industry has been disrupted, especially in the Red Sea area, where operators avoid the Suez Canal due to attacks by Houthi militants based in Yemen.

Maersk refused to comment. In February, its CEO stated that the company needed a permanent solution to return to the Red Sea.