Red Sea diversions now seen lasting through 2027 as carriers reset networks

Summary

With Houthi attacks persisting, most major carriers keep Cape of Good Hope routing as default, adding 10-14 days per round voyage and removing an estimated 1.3-1.8 million TEU of effective capacity. Analysts expect diversions to continue through at least 2027, keeping Asia-Europe rates 25-40% above pre-crisis levels.