Red sea shipping crisis escalates: July 2025 update for global logistics
Since late 2023, the Red Sea and Suez Canal have been at the centre of a major shipping crisis. Following the outbreak of conflict between Israel and Hamas, Houthi rebels began targeting commercial vessels in the Bab al-Mandeb Strait. By March 2024, all major shipping lines had suspended operations through the Suez Canal and Red Sea, rerouting via the Cape of Good Hope (CoGH), resulting in extended transit times, higher costs, and global supply chain disruptions.
Red Sea shipping: Severe attacks this week
Last Sunday, the Liberian-flagged, Greek-operated bulk vessel Magic Seas sank in the Bab al-Mandeb Strait following a missile and drone attack.
Within 48 hours, a second Liberian-flagged, Greek-operated vessel Eternity C caught fire and sank following another attack. Reports claim that up to 4 crew members have been killed while 10 have been rescued from the water. These incidents highlight the escalating risk even for neutral commercial vessels.
Cape of Good Hope shipping: The new normal
With Red Sea routes closed, shipping lines continue to divert around the Cape of Good Hope. This has led to:
Extended transit times of 10-15 days
Tight capacity on Asia-Europe and Asia-US East Coast lanes
Higher spot and contract freight rates
Equipment shortages, especially in Southeast Asia and Middle East hubs
Port congestion in Singapore, Rotterdam, and US East Coast ports
Global logistics outlook: No Red Sea recovery in 2025
Given persistent conflict, enhanced rebel capabilities, and limited diplomatic progress, container shipping through the Red Sea and Suez Canal is expected to remain suspended indefinitely.
Röhlig Logistics’ Global Sea Freight Team continues to monitor developments, working closely with carriers and local teams to manage rerouting, contracts, and customer communication. Our teams will ensure to keep you informed during this time. If you have any additional questions, please contact your Röhlig representative today.