Hapag-Lloyd Sees Prolonged Red Sea Reroutings Regardless of Ceasefire

Hapag-Lloyd Sees Prolonged Red Sea Reroutings Regardless of Ceasefire

BERLIN, June 11 (Reuters) – German shipping company Hapag-Lloyd does not expect the shipping industry to resume navigating the Suez Canal anytime soon, even if a ceasefire between Hamas and Israel were achieved now, a company spokesperson told Reuters on Tuesday.

The comments 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 its Danish competitor Maersk fell by 5-6% this afternoon in response to the news.

However, “even if a ceasefire were established now, this does not guarantee that the Houthi attacks will cease immediately,” the spokesperson added.

Hapag-Lloyd noted that after the Suez Canal reopens for transit, it would take at least four to six weeks to realign schedules and restore normal operations.

Commercial shipping has been disrupted globally, including 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 require a permanent solution before reconsidering the use of the Red Sea route.

(Reporting by Elke Ahlswede, Additional reporting by Jacob Gronholt-Pedersen, writing by Andrey Sychev, editing by Ludwig Burger)

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