Red Sea returns could free up global container capacity and pressure freight rates heading into 2027. File Image / Pixabay

Container shipping capacity scheduled to transit the Red Sea has doubled in six weeks, as container shipping lines accelerate their return to the route, according to ocean and freight analytics firm Xeneta.

Weekly capacity crossing the Bab el-Mandeb Strait in at least one direction reached 448,273 TEUs on October 5, it said in an emailed weekly ocean container shipping market update on Friday. 

This remains 48% below August 2023 levels, before container lines began diverting ships around the Cape of Good Hope.

The return could free up capacity across the global fleet and put pressure on freight rates heading into 2027, Emily Stausbøll, senior shipping analyst at Xeneta said.

Hapag-Lloyd and Maersk have resumed Suez Canal transits under their Gemini Cooperation, while CMA CGM and MSC have returned to the route on selected services.

“Only carriers can answer what has changed in security assessments in the last six weeks to underpin such a dramatic acceleration in the return to the Red Sea, but whatever the reason, this will see capacity released back into the global fleet and have a profound impact on freight rates and services heading into 2027,” Stausbøll said.

Meanwhile, carriers are cancelling sailings on Far East-US routes to support spot rates.

A total of 58,200 TEU was blanked on the US West Coast trade this week, while 35,500 TEU was removed from US East Coast services.

As of October 16, average spot rates stood at $8,296/FEU to the US West Coast and $11,495/FEU to the US East Coast, down 0.2% and 0.1%, respectively, week on week.

Far East-Europe rates showed signs of stabilising, rising 2.5% to $3,568/FEU to North Europe and 3.2% to $4,165/FEU to the Mediterranean.

“Shippers must view this latest development in Red Sea services with the highest importance because it will be one of the drivers for ocean container shipping markets in 2027," Stausbøll said.