Kuehne+Nagel CEO expects most container lines back in Suez Canal by early Q2

By Basile Day and Anastasiia Kozlova

Oct 22 (Reuters) - Most container shipping lines should resume using the Suez Canal route by late first quarter or early second quarter of 2027, Kuehne+Nagel Chief Executive Officer Stefan Paul said on Thursday, though he cautioned that geopolitics remained volatile.

"There is a clear intention among carrier partners to return to the route," Paul told Reuters after the Swiss freight forwarder raised its 2026 profit outlook for the third time this year.

The Asia-Europe trade corridor through the ​Suez Canal was abandoned by most shippers in November 2023 after attacks in the Red Sea ⁠by Yemen's Houthis, forcing ships to take the much ​longer trip around Africa. Plans to return to the Suez Canal were dampened earlier this year after the US-Israeli strikes on Iran in late February.

Paul also pointed to higher oil prices as a factor increasing the attractiveness of shorter voyage times, though added that reopening of the route "would not materially affect customer demand".

While Maersk has restored selected services through the Suez Canal, analysts say the gradual resumption of Red Sea routes is unlikely to materially affect this years earnings, as carriers' approach remains phased and cautious.

Unlike container lines, freight forwarders such as Kuehne+Nagel do not own ships and depend more on cargo volumes than freight rates.

(Reporting by Basile Day and Anastasiia Kozlova in Gdansk, editing by Anna Pruchnicka)