Israeli container shipping line Zim believes the likelihood of a return to the Suez Canal and the Red Sea lanes is increasing.

During the company’s third-quarter earnings call for 2025, Zim President and CEO Eli Glickman stated in response to analyst’s question about a return to the Red Sea and the possibility of expanding its share of the Asia-Europe trade: “The answer is yes. We are actually waiting the insurance companies to approve our return to the Red Sea, the Suez Canal, and the Mandeb Strait, and we look forward to the shorter route instead of the longer via the Cape of Good Hope as soon as possible.”

In November 2023, Zim was among the first carriers to divert around the Cape of Hope as Houthi rebels began to attack ships in the Red Sea linked to Israel in response to the war between Israel and Hamas in Gaza.

Earlier in the earnings, Glickman had stated that while the current ceasefire in Gaza is an encouraging development, its durability still needs to be further assured, and the company is closely monitoring the situation “That being said, we believe the likelihood of a near-term return to the Suez Canal appears to be increasing,” he said.

He also noted that from commercial perspective, a return to the Suez Canal route implies both an opportunity for improved fleet efficiency and cost savings and an increased risk of further rate suppression due to an increase in capacity supply.

This additional capacity is entering the market at a time when the container shipping industry is already facing an orderbook that represents 31% of the existing fleet Zim’s Executive Vice President and CFO Xavier Destriau noted that while a slowdown in deliveries is expected in 2026 compared to this year, more 3 million TEU of new capacity is expected to be delivered in 2027, surpassing the record level of 2024. “In 206, the industry’s return to the Suez Canal will significantly increase effective capacity after a period of adjustment, which could exacerbate the already existing supply-demand imbalance,” said.

The container shipping line has been returning chartering capacity as leases expire. Destriau said that as of this year, based on the company’s pr market outlook, 22 vessels have been returned. The company has three vessels (representing total TEU capacity of approximately 5,600 TEU) charteringiring this year, and 17 vessels (representing total TEU capacity of approximately 55,000 TEU) chartering expiring in 206. “We return the capacity we no longer need to the shipowners, and this flexibility allows it to adjust capacity as market conditions evolve or as a result of adjustments to our strategy,” he said.

Zim reported net profit of $123 million for the third quarter of 2025, compared to $113 for the same period last year. Revenues for the third quarter of 2025 were $1.78 billion, a year-on-year decrease of36%, almost in line with the average freight revenue per TEU, which fell by 35% to $1,602