Leading Shipping Lines Return to Suez Canal Route - Israel via Damietta

Dr. Aaron Lerner, 26 October 2026
https://youtu.be/Z_QSTBCTTkA

Israeli freight forwarders have confirmed what the global shipping market
has been signaling for weeks: major container carriers have resumed services
through the Suez Canal.

The shipping lines are, however, complying with the Houthi requirement that
vessels transiting the Red Sea not serve Israeli ports. Israeli cargo is
instead transshipped at the Egyptian port of Damietta to feeder vessels for
the final leg to Ashdod and Haifa, saving approximately 17 days compared
with the longer route around Africa.

The arrangement leaves out ZIM, which continues to take the long route
around Africa and now finds itself under pressure to lower its freight rates
to compete with the faster service its competitors can offer - even as it
continues to bear the higher operating costs associated with the longer
route.

The restoration of the Suez Canal route also offers significant savings for
cargo bound for the East Coast and Gulf Coast of the United States,
potentially shaving 10 to 17 days off transit times for all-water services
from the Far East and India, depending on the origin, destination, and
service.

This is particularly significant in light of the service crisis at the
Panama Canal caused by drought conditions and the prospect that a
strong-to-very-strong El Nino could exacerbate water shortages in the Panama
Canal watershed.

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