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Gradual return to Red Sea route a key development for global shipping
The Straits Times
|December 25, 2025
2026 after the Houthis in November signalled a halt to their strikes in the region following a ceasefire in Gaza between Israel and Hamas in October.
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A gradual return to the Red Sea route after long detours around the Cape of Good Hope would be the key thing to watch for in container shipping in 2026, Mr Rico Luman, ING's senior sector economist for transport and logistics, wrote in a Dec 1 note. "Container lines deciding to navigate back to the Red Sea is arguably the most important development to watch for in the global shipping market next year. And it's not a matter of 'if', but 'when'. And should one big company decide it's worth the risk, others will surely follow," wrote Mr Luman.
The Suez Canal has been a vital link for modern East-West trade for decades, handling more than 15 per cent of global goods trade and up to twice that share of global container traffic, particularly consumer goods.
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