Suez Canal Remains Closed: Cape of Good Hope Detour May Become Long-Term Route!?

Today, I’ll provide an update on the latest developments in the Suez Canal and Red Sea situation and how they are impacting the logistics industry.

Houthis declare continued military action until Gaza offensive ends

The Yemeni armed group known as the “Houthis” has announced that it will continue attacking commercial vessels in the Red Sea and Arabian Sea.
They have clearly stated they will not stop their operations until Israel’s offensive in Gaza is completely over.

As a result, the safety of the Red Sea–Suez Canal route remains unguaranteed.

Tensions persist despite U.S. halting strikes

Since March 2025, the United States had been conducting limited airstrikes on Houthi bases, but has currently suspended direct attacks.
However, the Houthis show no intention of agreeing to a ceasefire.

Thus, the Red Sea continues to be viewed as a “danger zone,” and many shipping companies are still taking a cautious approach.

Cape of Good Hope route becomes the new norm

Many shipping lines are now bypassing the Suez Canal and choosing the longer Cape of Good Hope route via South Africa.
For example, shipping from Asia to Europe via the Suez takes about 25–30 days, but using the Cape route adds over 10 extra days and incurs higher fuel costs.

Still, for the sake of prioritizing safety, carriers continue to take this route.

Suez Canal toll discounts have limited effect

The Suez Canal Authority has implemented up to a 15% discount on transit fees.
However, without guaranteed safety, most shipping lines are unlikely to return.

At present, safety remains a higher priority than cost.

Outlook: Uncertainty over Red Sea route normalization

Normalization of the Red Sea route depends heavily on progress in ceasefire negotiations between Israel and Palestine.
But with talks stalling, short-term recovery is unlikely.

As a result, the Cape route remains the main alternative, leading to increased shipping costs and unstable delivery schedules.

Conclusion: Logistics sector must prepare for a prolonged crisis

With the Suez Canal functionally offline, both carriers and shippers must restructure operations assuming long-term detour routes.
Also, price negotiations to cope with rising costs and stronger inventory control will become more critical.

The “Red Sea Crisis” is no longer temporary—it must be seen as a structural mid-term disruption.

Let’s continue to monitor the situation closely and respond flexibly and swiftly.