Shipping lines are avoiding Suez Canal as disruptions continue

Image: Roger Anis via Getty Images

As carriers adjust operations to mitigate risks in the Red Sea, shippers face limited options for quick transit due to the Panama Canal's potential delays from drought. This has resulted in increased costs for shippers, with ZIM, Hapag-Lloyd, and Maersk imposing war risk surcharges ranging from $20 to $100 per container. Some carriers are also charging higher rates to circumvent Africa. Changing routes have led to a congestion of ships, with 40 vessels near the strait and over 100 in the area. Shifting westbound containers around Africa adds 7-14 days of transit. Despite ongoing tensions and attacks by the Houthi militia in the Red Sea, the Suez Canal Authority emphasizes it remains the fastest route from Asia to Europe. The White House is working to strengthen maritime forces in the region to address the heightened threat.

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