The executive vice president of DP World said that ships not connected to Israel could start returning to the Red Sea in just two weeks, adding that this could lead to a “collapse” in shipping rates.

Narayan told Reuters on the sidelines of the World Economic Forum meeting in Davos, Switzerland, that sea freight rates may fall “at least 20% or 25%,” and this could happen within two or three months.

Europe must have a seat at the table when deals on war and peace are made, and I'm not just talking about Ukraine here, this must be the norm.

The Executive Vice President and Chief Financial Officer of the Dubai-owned Ports and Logistics Company added that it is difficult to predict a specific timetable.

Yemen's Houthi movement said on Sunday that it would limit its attacks on commercial ships to ships linked to Israel and would consider halting all attacks once the Gaza ceasefire is fully implemented.

The Iran-backed Houthis have carried out more than 100 attacks on ships since November 2023. They sank two ships, seized another, and killed at least four sailors.

They carried out attacks across the southern Red Sea and the Gulf of Aden and are still holding 25 crew members of the Galaxy Leader tanker they seized in November 2023.

In response, many of the world's major shipping companies diverted their ships away from the Red Sea, traveling instead around the southern tip of Africa.

Narayan said that this led to an increase in capacity by at least 30% than usual. He added that shipping rates are expected to decrease once the shorter route through the Red Sea and the Suez Canal returns to operation.

DP World, which operates ports in countries from Britain to Peru, as well as operating warehouses and logistics parks.

When asked about potential expansion, Narayan said that DP World is looking at the east and west coasts of Africa.

“I think there is huge potential there because there is nothing available... and the cost of transporting goods in Africa is so high that it makes sense.”

In Europe, he said the state-owned conglomerate was working to invest in London Gateway Port despite the “challenging” economic environment in the UK due to lack of growth and legacy issues.

The $1.3 billion project was reportedly put on hold after two ministers criticized the practices of DP World's P&O Ferries company, but British Business Secretary Jonathan Reynolds said in October that the investment would go ahead after... Conversations with the company.