Container shipping capacity through Red Sea returns to pre-war levels

Container shipping capacity on several key routes has returned to pre-war levels after the June 17 memorandum of understanding between Washington and Tehran ended the conflict that began in late February. Maersk and Hapag-Lloyd announced on July 6 that their vessels would resume transit through the Suez Canal, the first such sailings since February.

The decision followed an assessment of security conditions in the Red Sea.

Capacity rebound Data from Xeneta showed container capacity between Asia and the U.S. West Coast reached 350,000 TEU last week, exceeding the previous record. Regional capacity, which had fallen from 3.2 million TEU to 74,000 TEU by mid-June, has recovered on multiple routes.

The International Maritime Organization opened a five-day meeting on July 6 focused on protecting shipping lanes. Secretary-General Arsenio Dominguez stated that seafarers had lost lives and that the conflict had affected global trade, energy, and food security.

Industry outlook Punit Oza, head of Maritime NXT, said shipping demand is driven by consumers rather than shipowners and that the physics and economics of seaborne trade remain unchanged. Judah Levine of Freightos said container shipping patterns are likely to resemble pre-war operations, with Dubai’s Port of Jebel Ali remaining the main regional hub.

Ruth Banomyong of Thammasat Business School said future planning will emphasize integrated land-sea routes and reduced reliance on single corridors. He noted that smaller ports such as Fujairah and Khor Fakkan handled increased volumes during the conflict and may serve as contingency options going forward.