Container ships return to the Red Sea

In the past week, 62 container ships passed through the Suez Canal, marking the highest weekly figure this year. Alphaliner estimates that 63% of capacity on the Far East-Europe route is routed through the canal. Among the top ten container carriers, 24 out of 46 connections utilize the Red Sea. The average capacity for routes to and from the Mediterranean is 63%, with 70% using the Suez Canal. Despite some carriers returning via the canal for faster transport, there are concerns about potential port congestion. Rates for shipping have seen slight increases, but demand remains weak, leading to uncertainty about sustaining rate hikes. Analysts speculate that high fuel prices and shorter transit times are influencing carriers to return to the canal, although excess capacity may lead to further declines in freight rates.