Asia-US shippers could see lower rates from Red Sea return

Major ocean carriers, after two years of sectarian violence that reconfigured regional shipping and the broader global supply chain, reopened services on a key Mideast route that could mean lower rates for shippers from Asia to the United States.

The announcement Thursday by Maersk (MAERSK–B.CO) that it is restarting scheduled services via the Red Sea and Suez Canal was a welcome sign of normalization amid years of violence and political turmoil across the region.

Maersk’s reconfiguring of its MECL service connecting Asia and the U.S. was by all appearances a conservative approach and one likely to be emulated by other container carriers as they reintroduce significant capacity into an uneven environment that could further undercut weakened ocean rates.

One major carrier, CMA CGM of France, mostly continued scheduled services throughout the Houthi offensive.