International Report: “Return of Shipping Lines to the Red Sea Hinges on the Holding of the Gaza Agreement”

The US-based data analysis firm Standard & Poor’s Global said that the collapse of the ceasefire in Gaza would undermine the growing return of shipping lines to the Red Sea.

In a report published last Friday, the firm said that “container shipping lines have begun to resume services through the Red Sea amid a continued decline in attacks by the Yemeni army,” noting that this will increase maritime traffic through the Suez Canal in the coming months and free up capacity currently consumed by the Cape of Good Hope route.

However, the firm emphasized that “the situation could easily change if the Houthis resume their attacks.”

It explained that “according to market intelligence analysis, there remains a high risk of attacks on ships this year if the ceasefire between Hamas and Israel collapses permanently, as is likely.”

She added that “the Yemenis maintain a large arsenal of anti-ship cruise missiles, unmanned surface vessels, and unmanned submarines,” noting that they had used the ceasefire period to bolster their arsenal and capabilities.

The report cited as an indicator of the fragile stability in the Red Sea the announcement by the French company CMA CGM that it was rerouting three of its services connecting Asia and Europe to the Cape of Good Hope.