(Bloomberg) -- Container liner MSC Mediterranean Shipping Co. SA said it will continue to send its ships around Africa’s southern tip until further notice, a sign that any resumption to normal trade flows through the Red Sea is not imminent. 

“The situation in the Suez Canal remains fluid and the security situation is unclear,” the company said by email Tuesday. “In order to guarantee the safety of our seafarers and to ensure consistency and predictability of service for our customers, MSC will continue to transit via the Cape of Good Hope until further notice.”

The Switzerland-based business operates 884 ships, according to Alphaliner data, making it the world’s largest container carrier controlling about 20% of global capacity.

READ: Shippers Cautious on Return to Red Sea Despite Israel-Hamas Deal

Yemen’s Houthi rebels said over the weekend that they would stop attacking ships with links to the US and UK after a ceasefire agreement between Israel and Hamas, but it has been uncertain how that announcement would impact shipping.

About 70% of vessel traffic has been sailing thousands of miles around Africa rather than through the Red Sea since the Houthis first began attacking ships in 2023.

MSC joins European rivals A.P. Moller-Maersk A/S, Hapag-Lloyd AG and CMA CGM Group in expressing caution in recent days about any quick return to the Red Sea route, indicating that they’re holding off for now until safe passage is assured.

The Israel-Hamas peace deal “is clearly a positive development, but we should not expect to see container lines rush to return to the Suez Canal,” Simon Heaney, senior manager for container research with Drewry, wrote in a research note this week. “The Gaza peace deal has only just begun and can at best be described as fragile. Any breakdown will provide the Houthis with a justification to launch missiles again.”

Since the Houthis started their attacks in November 2023, Drewry said more than 100 vessels have been attacked and two were sunk, while four seafarers have been killed and the 25-member crew of the car carrier Galaxy Leader was taken hostage.

(Adds comments from analyst)

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