Finance
Still questions before return to Suez Canal, German car industry says
Published by Global Banking & Finance Review®
Posted on January 16, 2026
1 min readLast updated: January 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 16, 2026
1 min readLast updated: January 19, 2026
The German car industry is cautious about resuming Suez Canal transport due to safety and insurance concerns, despite potential benefits.
FRANKFURT, Jan 16 (Reuters) - The German automotive industry is still seeing open questions, particularly insurance issues, before resuming transports through the Suez Canal, its business association VDA said on Friday.
"The top priority for everyone involved is the absolute safety of the crews -- this is a prerequisite for any decision to resume wider use of this route," VDA said in an emailed statement.
It said a first survey of the route has been conducted with select shipping companies, under special security measures.
"In principle, resuming voyages through the Suez Canal could lead to shorter transport times and lower costs compared to the current alternative routes," VDA said.
Maersk said this week that one of its services will resume using the Red Sea and Suez Canal this month, marking a key step towards ending two years of global trade disruption due to attacks on ships by Yemeni Houthi rebels.
(Reporting by Chris Steitz, writing by Thomas Seythal, editing by Linda Pasquini)
The Suez Canal is a man-made waterway in Egypt that connects the Mediterranean Sea to the Red Sea, allowing ships to save time and distance by avoiding the long route around Africa.
Insurance in shipping protects against financial loss due to damage or loss of cargo, ships, and liability for accidents that occur during transportation.
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles, playing a crucial role in global transportation and economy.
Risk management involves identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.
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