Hapag-Lloyd Anticipates Extended Disruption to Shipping on Suez Canal

German shipping company Hapag-Lloyd does not expect the shipping industry to resume navigating the Suez Canal soon, even if a ceasefire between Hamas and Israel were to be established now, a company spokesperson told Reuters on Tuesday. The threat of maritime disruptions in the Red Sea has been constant since last fall.

These remarks from the world’s fifth-largest shipping firm follow Palestinian groups' support for a U.N. Security Council resolution endorsing a ceasefire proposal in Gaza. 

Shares of Hapag-Lloyd and Danish counterpart Maersk dropped by 5-6% this afternoon following the news.

“Even if a ceasefire were agreed upon now, it doesn't mean that the Houthi attacks would stop immediately,” the spokesperson said.

Hapag-Lloyd added that once the Suez Canal reopens for transit, it would still take four to six weeks to rearrange schedules and normalize operations.

Commercial shipping has been globally disrupted, particularly in the Red Sea region, where operators are avoiding the Suez Canal due to attacks on vessels by Yemen-based Houthi militants.

Maersk declined to comment on the situation. In February, its CEO stated that the company would need a permanent resolution before considering a return to the Red Sea.

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