Freightwaves: After massive Q1 loss, Maersk returns another service to Suez

Published by freightwaves 

After profits collapsed in the first quarter – and just days before it reports Q2 earnings – Maersk said it will return another headhaul service to the full Suez Canal-Red Sea route. 

“We are pleased to share that Maersk and Hapag-Lloyd are announcing a structural change to one of the Gemini services, the AE19 service,” the Copenhagen-based liner said in a brief customer advisory, “it will now sail via the trans-Suez route instead of transiting via the Cape of Good Hope. This change will take effect immediately, starting with Berlin Maersk’s westbound route voyage 628W, and eastbound voyage 637E.”

Maersk (OTC: AMKBY) said the decision was made jointly with Hapag-Lloyd of Germany, its partner in the global Gemini cooperation. The return “comes following thorough assessments of the security situation in the Red Sea area, and marks a step towards a gradual return to the trans-Suez corridor.”

Maersk profit collapsed from to $100 million from $1.2 billion in the first quarter on lower rates, but the company in June upgraded full-year guidance on stronger Far East demand and sustained spot-rate increases.

Maersk and other major container carriers diverted rotations away from the Red Sea and around the southern tip of Africa since late 2023 after attacks by Yemen’s Houthi rebels in support of Palestinians in Gaza.

While Houthi attacks have become sporadic since then, the rebels, who control 40% of Yemen, have regularly made threats after the United States attacked Iran. The Houthis recently renewed attacks on Saudi-linked shipping in their growing conflict.

The AE15 Asia–Mediterranean–Europe Gemini service now uses trans-Suez; Maersk’s standalone MECL Middle East–U.S. East Coast service is also shifting to Red Sea-Suez routing in August. 

Among other lines, CMA CGM has resumed certain Suez routings after prior pauses, including the EPIC westbound loop linking North Europe with the Indian subcontinent. Mediterranean Shipping Co. launched a Europe–Red Sea–Middle East express rotation in May, including calls at Abu Kir, King Abdullah, Jeddah and Aqaba but short of a broad reversion to the Suez. Cosco (1919: HK) has offered weekly Red Sea sailings since March and planned its first Bab el-Mandeb passage in more than two years on the revived RES4 service in late July. 

Maersk said it will implement the new change with the sailing of the Berlin Maersk (Voyage 628W), with the rotation of Xingang – Qingdao – Busan – Ningbo – Shanghai – Tanjung Pelepas – Jeddah – Suez Canal – Port Said – Port Tangier – Port Said – Suez Canal – Jeddah – Singapore – Xingang.

“The route through the Suez and the Red Sea is the fastest, most sustainable and most efficient way to serve customers with transport between Asia and Europe,” the company said.