The prospect of a large scale return of container ships to the Red Sea following the announcement of a ceasefire between the US and Houthi militia in Yemen would flood the market
The prospect of a large scale return of container ships to the Red Sea following the announcement of a ceasefire between the US and Houthi militia in Yemen would flood the market with shipping capacity and cause a global collapse in freight rates, but the situation remains far from certain.
Data released by Xeneta, an ocean and air freight intelligence platform, shows global TEU-mile demand would decrease 6% if container ships begin sailing through the Red Sea and Suez Canal again instead of diverting around the Cape of Good Hope.
TEU-mile demand factors the distance each 20ft equivalent container (TEU) is transported globally as well as the number transported. The 6% is based on global container shipping demand growth of 1% for full year 2025 and a large scale return of container ships to the Red Sea in H2.
“Of all the geo-political disruptions impacting ocean container shipping in 2025, conflict in the Red Sea continues to cast the longest shadow, so any meaningful return to the region would have massive consequences," said Peter Sand, Xeneta Chief Analyst. “Container ships returning to the Red Sea would flood the market with capacity with the inevitable outcome of collapsing freight rates. If
Content Original Link:
" target="_blank">
