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Maersk: Disruptions to container shipping via Red Sea have expanded
World News
2024-07-17 | 01:34
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Maersk: Disruptions to container shipping via Red Sea have expanded
Denmark's AP Moller-Maersk said on Wednesday that the disruptions to its container shipping via the Red Sea had extended beyond trade routes in far Eastern Europe to its entire ocean network.
"The cascading impact of these disruptions extends beyond the primary affected routes, causing congestion at alternative routes and transshipment hubs essential for trade with Far East Asia, West Central Asia, and Europe," Maersk said in a statement.
Maersk and other shipping companies have diverted vessels around Africa's Cape of Good Hope since December to avoid attacks by Iran-aligned Houthi militants in the Red Sea, with the longer voyage times pushing freight rates higher.
Asian exports are more impacted by the situation than Asian imports, Maersk said, adding that this is primarily due to Asian countries being major global exporters.
Maersk said ocean cargo demand remains robust globally, with air freight, including a sea-air solution being used as an alternative where time-sensitive goods need to be moved quickly.
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