Maersk and Hapag-Lloyd resume Red Sea route amid improving security assessments

Global shipping giants Maersk and Hapag-Lloyd are redirecting a key Mediterranean-to-China container service back through the Red Sea and Suez Canal, signaling renewed confidence in regional security. The move, announced on July 6, 2026, marks a gradual return to trans-Suez operations following Houthi attacks that began in late 2023 forced most carriers to reroute around Africa’s Cape of Good Hope. The decision comes as part of the Gemini Cooperation alliance, which Maersk and Hapag-Lloyd operate, and follows “thorough assessments of the security situation in the Red Sea area,” according to Maersk’s statement. The first vessel to alter course is the *Majestic Maersk*, currently near Oman, according to Bloomberg ship-tracking data. The return to the shorter route is expected to ease capacity constraints and reduce soaring spot container rates that have surged in recent weeks due to both rerouting costs and peak-season demand. The shift follows a temporary pause in Houthi attacks earlier in 2026, though renewed regional tensions in late February sparked by the Iran war had reignited security concerns. Shares of both companies fell on the news—Maersk by as much as 9% and Hapag-Lloyd by up to 4.6%—as investors anticipated reduced freight rates and improved operational efficiency. The companies rank 7th and 17th, respectively, on Transport Topics’ Top 50 list of the largest global freight companies.