On 6 May 2025, US President Trump declared a truce between the United States and the Houthi rebels, a statement confirmed the following day by Oman’s foreign minister, who played a key mediating role. Under the terms of the agreement, the US will cease its military strikes on Yemeni infrastructure, while the Houthis have agreed to stop targeting US vessels in the Red Sea and the Bab el-Mandeb Strait. The Houthis clarified, however, that the ceasefire does not extend to Israel, meaning they will continue to consider attacks on Israeli-linked ships as legitimate.
Following the ceasefire declaration, several vessels, particularly those stranded in Yemeni ports, were able to resume unloading operations and set sail again due to a reduction in bombings and the suspension of attacks. Nonetheless, most shipping companies remain extremely cautious. Traffic in the Red Sea and through the Suez Canal is still only about half of pre-crisis levels. Major carriers, including Maersk and Hapag-Lloyd, have stated that they will not return to regular operations in the region until there have been at least three months of stability with no attacks, along with broader security assurances.
MSC is also maintaining a wait-and-see approach, while CMA CGM has shown more interest in resuming Suez Canal transits. During a virtual meeting on 7 May between CMA CGM executives and the Suez Canal Authority, the company described the recent developments in the region as “a positive signal” and reiterated that the Suez Canal remains the shortest and fastest route compared to the Cape of Good Hope.
The French carrier has continued to use the Red Sea to some extent, with 19 percent of its total volumes passing through the area in the first four months of 2025, although the majority of its traffic still involves circumnavigating Africa. While signalling openness to change, CMA CGM emphasised that any launch of new services or increase in transits would depend on improved safety conditions for both ships and crews, and that any adjustments would be made only if such improvements prove stable and lasting.
The Suez Canal Authority is determined to capitalise on the ceasefire to win back lost traffic and has announced that from 15 May, for a period of ninety days, a discount will be offered to vessels using the canal. The discount, set at 15 percent, will apply to container ships with a net tonnage of at least 130,000 tonnes. Egyptian authorities are also implementing aggressive marketing strategies to promote the return of ships to the Suez Canal, highlighting the competitive advantages of this route compared to alternatives. However, unless the security situation in the Red Sea improves significantly, these initiatives are likely to continue having only limited success.
The Houthi attacks on cargo ships travelling between the Indian Ocean and the Red Sea began in October 2023, coinciding with Israel’s invasion of Gaza. This prompted global container carriers to reroute their vessels around the Cape of Good Hope, increasing transit times and operational costs. The situation has had a severe impact on the Suez Canal: in 2024, just 13,200 ships passed through, down from 24,600 the previous year. As a result, revenue plummeted from 10.2 billion dollars in 2023 to approximately four billion in 2024.
