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Home @NYTimes

Why the Shipping Industry Isn’t Rushing Back to the Red Sea

March 21, 2025
in @NYTimes, Business
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New York Times - Business

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The companies that operate large container ships say they plan to keep going around Africa as violence flares in the region.

When President Trump ordered military strikes last weekend against the Houthi militia in Yemen, he said the militia’s attacks on commercial shipping in the Red Sea had harmed global trade.

“These relentless assaults have cost the U.S. and World Economy many BILLIONS of Dollars while, at the same time, putting innocent lives at risk,” he said on Truth Social.

But getting shipping companies to return to the Red Sea and the Suez Canal could take many months and is likely to require more than airstrikes against the Houthis. For over a year, ocean carriers have overwhelmingly avoided the Red Sea, sending ships around Africa’s southern tip to get from Asia to Europe, a voyage that is some 3,500 nautical miles and 10 days longer.

The shipping industry has largely adapted to the disruption, and has even profited from the surge in shipping rates after the Houthis began attacking commercial ships in late 2023 in support of Hamas in its war with Israel.

Shipping executives say they do not plan to return to the Red Sea until there is a broad Middle East peace accord that includes the Houthis or a decisive defeat of the militia, which is backed by Iran.

“It’s either a full degradation of their capabilities or there is some type of deal,” Vincent Clerc, the chief executive of Maersk, a shipping line based in Copenhagen, said in February.

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