The global shipping landscape for food and dairy cargo has not returned to normal — not even close. Despite a meaningful geopolitical development in June 2026, the structural disruptions that began with the Red Sea crisis continue to reshape transit times, freight budgets, and supply-chain planning for importers and distributors across the Middle East and West Africa.
The Red Sea: Calm on the Surface, Fragile Underneath
On 14 June 2026, a US–Iran memorandum of understanding consolidated a ceasefire, and Houthi attacks on maritime navigation have been paused since that point. On paper, this is a positive signal. In practice, the shipping industry has not yet responded with confidence.
Suez Canal utilisation currently stands at approximately 18.7% of its pre-crisis share — which was close to 80% of eastbound and westbound container traffic. CMA CGM has announced that several of its major Asia–Europe services, including FAL1, FAL3, and MEX, are reverting to Cape of Good Hope routing, citing a
Sources
- Red Sea Shipping Crisis 2026: Rates, Reroute, Transit | Suaid Global
- Red Sea Crisis Update: Route Alternatives & Cost Impacts
- The Impacts of the Red Sea Shipping Crisis | J.P. Morgan
- The Red Sea Crisis: Impacts on global shipping and the case ...
- The Red Sea Shipping Crisis (2024–2025): Houthi Attacks and Global Trade Disruption | Atlas Institute for International Affairs
- Shipping Delays & Freight Cost Increases 2025 | Freightos
- The Deepening Red Sea Shipping Crisis: Impacts and Outlook
- High freight rates strain global supply chains, threaten vulnerable economies | UN Trade and Development (UNCTAD)
This article is market commentary prepared by the Dairy Land Research Team for general information only and does not constitute commercial, financial or trading advice.