Market Pulse 2026 Week 37

The escalation in the Middle East tensions as Houthi forces advance in Yemen over the last 2 weeks has not deterred carriers from resuming more Suez transits, with COSCO and OOCL the latest carriers to return to the troubled Red Sea region. The move will leave the Premier Alliance partners as the only main carrier group that have not returned to the Red Sea. The total capacity of ships diverted to the Cape route has dropped to a 2 year low of 4.6% of the global fleet.

Freight rates and charter rates have continued to rise, as capacity remains very tight due to limited new ship deliveries with the current new vessel delivery rate at less than 100,000 teu each month. Even as port congestion at China and Europe are starting to ease following the recent typhoon related disruptions and port strikes respective, the vessel delays have ratcheted up port congestion at downstream ports especially in Southeast Asia and the Indian subcontinent.

The capacity race between carriers is taking a fresh turn as Maersk is reported to be close to a massive newbuilding push with over 30 new orders due to be concluded shortly involving ships of 18,000 to 24,000 teu.

Carriers extend Red Sea transits despite expanding Houthi positions in Yemen
COSCO and OOCL have joined OCEAN Alliance partner CMA CGM to resume Red Sea transits on their jointly operated Europe/Med-Asia services from 15 September 2026. 5 services operated by COSCO and OOCL ships will start their eastbound Suez transits starting with OOCL PORTUGAL on AEU3/LL2/FAL2/NE3 on 15 September, COSCO SPAIN on AEU7/LL3/FAL7/NE7 and COSCO SHIPPING TAURUS on AEM1/WM1/MEX2/MD2 on 16 September, COSCO SHIPPING KILIMANJARO on AEM6/AAS/PHOEX/BEX2 on 20 September and OOCL DENMARK on AEU1/LL1/FAL5/NE1 on 28 September. They will join Hapag-Lloyd and Maersk who have separately announced an expansion of their trans-Suez routing on both directions to 6 services with the NE4/AE5, SE2/AE11, SE1/AE12 and IEX/ME2 joining the SE3/AE15 and SE4/AE19 that have already switched to the trans-Suez route since August. These moves leave Evergreen and the Premier Alliance partners ONE, HMM and Yang Ming as the only remaining main carriers that have yet to return to the Red Sea.