German container shipping major Hapag-Lloyd has said it does not plan to resume operations through the Red Sea in the near future, citing ongoing security risks in the region.
The company stated that the situation remains volatile, with continued threats to commercial vessels, making a return to the Red Sea and Suez Canal route unsafe for the time being. As a result, Hapag-Lloyd will continue to divert its vessels around the Cape of Good Hope, despite longer transit times and higher operational costs.
The Red Sea route is a critical artery for global trade, particularly linking Asia with Europe. Prolonged diversions by major shipping lines like Hapag-Lloyd are expected to keep freight rates elevated and add pressure on global supply chains.
The company added that it is closely monitoring developments and will reassess its decision as and when maritime security conditions improve.