Kuehne+Nagel expects shipping lines to return to the Suez Canal by 2027

Kuehne+Nagel CEO Stefan Paul stated that most container shipping lines should resume using the Suez Canal route by the end of the first quarter or the beginning of the second quarter of 2027. The executive made these remarks to Reuters after the Swiss company raised its 2026 profit guidance for the third time this year, while warning that geopolitics remains volatile.

Paul said there is a clear intent among partner carriers to return to that route. The Asia-Europe trade lane via the Suez Canal had been abandoned by most carriers in November 2023 following attacks by Yemen's Houthis in the Red Sea, forcing vessels to take the much longer route around Africa via the Cape of Good Hope.

According to the sources, plans to return to the canal were affected earlier this year by US and Israeli strikes on Iran in late February. Paul also noted that rising oil prices increase the appeal of routes with shorter transit times, although he clarified that reopening the waterway "would not substantially affect customer demand."

The sources note that Maersk has already restored some occasional services through the Suez Canal, but analysts consider it unlikely that the gradual resumption of Red Sea routes will have a significant impact on this year's results, given that carriers' approach remains gradual and cautious.

Unlike shipping lines, freight forwarders such as Kuehne+Nagel do not own vessels, and their business depends more on cargo volumes handled than on freight rates, according to the sources.