Analysts warn Trump’s Gaza plans may disrupt shipping industry’s Red Sea recovery.
Speculation surrounding the resumption of shipping in the Red Sea and Suez Canal is intensifying, with many in the industry unsure when full operations will return. The head of the Suez Canal Authority has cautiously predicted that the situation may improve by the end of March, while major shipping companies like Maersk anticipate a longer recovery, potentially stretching into late 2025.
Experts emphasize that the future of shipping through the Red Sea is heavily dependent on the success of the second round of peace talks for Gaza. The current ceasefire, marked by the exchange of hostages and detainees, is holding, but tensions remain as many fear Trump’s remarks about U.S. control over Gaza could derail the peace process. Trump’s comments, which suggest Palestinians could be relocated elsewhere, have drawn sharp criticism from Arab nations, with Saudi Arabia insisting that peace requires a Palestinian state.
Analyst Lars Jensen expressed concerns, noting that the chances for a swift recovery in the region are now looking less likely. In contrast, the Suez Canal Authority remains hopeful, pointing to incremental signs of recovery, such as the passage of a Liberian tanker after months of disruption.
At an oil industry conference, many in the sector continue to adopt a “wait-and-see” approach. Meanwhile, reports emerged about an LNG carrier making its way through the Red Sea for the first time in nearly a year, though its destination remains unclear, signaling both cautious optimism and ongoing industry uncertainty.
(Source: The Maritime Executive)
