ARLINGTON, VA – The Red Sea shipping route is likely to reopen in the year ahead as major carriers are signaling a willingness to resume transits as soon as security conditions allow.
Over the last two years, container carriers shifted routes in the region due to security concerns from militant attacks, resulting in increased costs and transit times. Carriers traveling through the area were forced to increase insurance rates and reduce capacity, causing uncertainty in the supply chains. U.S. rice exporters faced significant unpredictability around rates and container availability.
The U.S. rice industry relies on container carriers to ship rice to seven out of the top twenty export markets. Primary markets for containerized U.S. rice can be found in the Middle East and Asia such as Saudi Arabia, Jordan, Israel, Turkey, Japan, South Korea, and Taiwan. In 2024, those markets combined accounted for nearly 22 percent of all U.S. rice exports, compared to the average 10 percent of total U.S. grain (non-rice) exports.
As major container lines are signaling a gradual return, the extra capacity will ease overall costs for U.S. exporters including those related to insurance rates, shorter transit times, and increased container availability.
“We’re encouraged to hear this development,” said Derek Alarcon, director of export sales at Farmers’ Rice Cooperative and chair of the USA Rice Europe, Africa, Middle East Trade Policy Subcommittee. “During a time with low global prices, easing of container rates will only help our industry stay competitive, lowering the landing costs in our overseas markets and keeping U.S. rice top of mind.”
Jim Wisemeyer, Pro Farmer analyst and speaker at next week’s USA Rice Outlook Conference, recently reported on a new
ING economic analysis indicating the return of the Red Sea-Suez Canal route as the biggest story in container shipping for 2026 as the Canal handles more than 15 percent of global goods trade and nearly 30 percent of that in container traffic.