German shipping giant Hapag-Lloyd has abandoned plans to reinstate a Suez Canal routing for its India-US East Coast TPI service after failing to secure customer support due to insurance concerns, reports London's S&P Global.

Expeditors International, the carrier's largest freight forwarder account for India-US volumes, raised concerns over terrorism and war-risk liabilities for Red Sea transits. A Hapag-Lloyd India executive said many shippers were unwilling to sign letters of intent requiring them to absorb the risks.

The company said no timeline has been set for a Suez return, stressing that stability and tangible progress are needed before vessels resume transits. Expeditors moves about 400 TEU per week on the TPI, making its support critical.

Other forwarders including DSV, Kuehne + Nagel and CH Robinson signalled willingness to back a Suez return, but insurance exposure remains a sticking point. US retailer Costco is among buyers reluctant to commit cargo for the route.

Hapag-Lloyd handled 303,500 TEU from India to the US through November, about 23 per cent of the 1.3 million TEU market.

Carriers continue to divert around southern Africa amid an unsettled ceasefire between Israel and Hamas. The Premier Alliance's 2026 network avoids the Red Sea, while Ocean Network Express plans a tentative return under a slot charter deal.

CMA CGM will resume a Suez rotation for its Indamex service in January, with the CMA CGM Verdi departing Nhava Sheva January 18 and transiting the canal February 8. The French line aims for a full Suez rotation by the second quarter of 2026.

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