▀█▀he global shipping lines is expected resume normal navigation in the Red Sea and the Suez Canal, and the movement of ships will be fully regulated in the second quarter of this year in this waterway.
The first quarter is expected to witness a new regulatory process in preparation for the return of navigation in the Red Sea to normal, after reaching a ceasefire agreement in Gaza between Israel and Hamas.
The year 2024 witnessed a major impact on shipping prices in general, especially containers and oil and gas tankers, as a result of the disruption of navigation in the Red Sea, which was reflected in inflation rates in Europe and the United States and on shipments coming from Asian countries, especially China, to various countries of the world. We saw prices.
As shipping operations and chains will be regulated, Supply in the world and then shipping and commodity prices will decrease to their previous levels and oil and gas prices as well, but in the first quarter of the year the regulatory processes will still be implemented.
Expectation are also present for implementing security arrangements in the Red Sea and Bab al-Mandab area to open the way for regular navigation in the Red Sea.
The Houthi militia are also expected to halt attacks on ships in the Red Sea following the ceasefire deal, decreasing the risk for ships passing through the Suez Canal.
Around 12% of global trade, and 30% of global container traffic passes through the Red Sea.
Four of the world’s five largest container-shipping companies, namely Maersk, Hapag-Lloyd, CMA, CGM and MSC have suspended their services in the Red Sea, and thus in the Suez Canal; due to the Houthi attacks in the Red Sea.
The Suez Canal is one of the most important channels of the global oil trade. Traffic worth ~6.8 million bpd pass through the canal. Also, the U.S., Qatar and Russia are the leading shippers of LNG through the Egyptian Canal.
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