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FREIGHT: Red Sea Shipping Risks Remain Despite Israel-Hamas Ceasefire: Platts

FREIGHT
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Most shipping companies and charterers are still opting for the longer Cape of Good Hope route despite a ceasefire agreement between Israel and Hamas, Platts said.

  • The ongoing risk of Houthi rebel attacks in the Red Sea, influenced by Iran, remains a significant concern.
  • Even after Israel and Hamas reached a ceasefire on January 15, 2025, the high war risk premium continues to deter shippers from using the Suez Canal.
  • Major companies like Japan's NYK Line and Ocean Network Express are monitoring the situation closely but are cautious about resuming Red Sea shipping without guaranteed safety.
  • The LNG shipping market has softened due to an oversupply of new ships despite halted transits through the Red Sea and Suez Canal.
  • Until regional tensions decrease significantly, most companies will continue to route via the Cape of Good Hope, despite the additional costs and longer travel times involved.
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Most shipping companies and charterers are still opting for the longer Cape of Good Hope route despite a ceasefire agreement between Israel and Hamas, Platts said.

  • The ongoing risk of Houthi rebel attacks in the Red Sea, influenced by Iran, remains a significant concern.
  • Even after Israel and Hamas reached a ceasefire on January 15, 2025, the high war risk premium continues to deter shippers from using the Suez Canal.
  • Major companies like Japan's NYK Line and Ocean Network Express are monitoring the situation closely but are cautious about resuming Red Sea shipping without guaranteed safety.
  • The LNG shipping market has softened due to an oversupply of new ships despite halted transits through the Red Sea and Suez Canal.
  • Until regional tensions decrease significantly, most companies will continue to route via the Cape of Good Hope, despite the additional costs and longer travel times involved.