# Potential return of container ships to Red Sea following US-Houthi ceasefire announcement could cause global collapse in freight rates, according to Xeneta data

> Xeneta data indicates that global TEU-mile demand would fall 6% if container ships return to the Red Sea and Suez Canal instead of using the Cape of Good Hope. The projection follows a US-Houthi ceasefire announcement. Xeneta says the return is far from certain.

- Date: 2025-05-08 · published 2025-05-08T12:00:00.000Z
- Category: geopolitics · region Red Sea · magnitude medium
- Page: https://feedsoft.ai/events/16947-potential-return-of-container-ships-to-red-sea-following-us-houthi-ceasefire
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md)

## Why it matters

A large-scale return would release container capacity and could sharply lower freight rates, with spillover sentiment to bulk freight. The scenario is uncertain and depends on how durable the ceasefire proves.

## Read by commodity

- OCEANFRT: bearish ▼

## Sources

- xeneta.com: https://www.xeneta.com/news/potential-return-of-container-ships-to-red-sea-following-us-houthi-ceasefire-announcement-could-cause-global-collapse-in-freight-rates-according-to-xeneta-data

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.