Shipping giant Maersk has confirmed that another of its cargo ships has successfully completed an east-west trial voyage in the Red Sea. This marks a small step towards the resumption of normal navigation on this vital trade route connecting Asia and Europe.

According to Maersk's announcement, the Maersk Denver, flying the American flag, successfully passed through the Strait of Mandeb into the Red Sea on January 11th to 12th. The company stated that "necessary security measures" were taken during the navigation but did not provide specific details.

In 2023, amidst renewed Israeli-Palestinian conflicts and attacks by Houthi rebels in Yemen on vessels navigating the Red Sea, shipping giants like Maersk and Hapag-Lloyd declared rerouting around the southern tip of Africa at the Cape of Good Hope. Prior to this detour, the Red Sea route accounted for 10% of global maritime trade.

Currently, major shipping companies are in the testing phase before fully resuming navigation.

In mid-December last year, Maersk announced that its vessel Sebarok successfully navigated the Red Sea route under the "highest level of security measures," marking its first voyage in two years. After another successful navigation test a month later, Maersk has yet to disclose a specific timeline for resuming Red Sea routes.

The company stated, "If safety standards continue to be met, we will gradually resume east-west navigation through the Suez Canal and the Red Sea in a phased manner. There are currently no additional voyages to announce."

French shipping company CMA CGM announced in December last year that its India-Pakistan to U.S. East Coast route would operate via the Red Sea and the Suez Canal starting on January 15th. It is reported that taking the Red Sea route instead of circumnavigating the Cape of Good Hope can save approximately 14 days of voyage time.

As a sign of navigation resumption, CMA CGM's Benjamin Franklin successfully completed a trial voyage in the Red Sea in November last year.

Once CMA CGM successfully resumes operations, the cost advantage of reducing the voyage time by 14 days is likely to prompt more shipping giants to return to the Suez Canal.

From a capital market perspective, the resumption of Red Sea navigation by large shipping companies may not necessarily be a positive factor for stock prices. Shorter voyages mean increased freight volume, potentially putting pressure on the profit margins of the shipping industry. It is estimated that Maersk and other shipping giants rerouting around Africa equates to a global reduction in shipping capacity by 7% to 8%.