Maersk Warns of Continuing Disruptions to Red Sea Routes

An image depicting the Red Sea and its associated shipping disruptions
Updated Published

The coming months are expected to be difficult for carriers and businesses due to ongoing disruptions in container shipping through the Red Sea, according to Danish shipping company Maersk's announcement on Monday.

Since December, Maersk and other shipping firms have rerouted vessels around Africa's Cape of Good Hope to avoid attacks by Iran-aligned Houthi militants in the Red Sea. This detour has led to longer voyage times and increased freight rates.

"The longer that this lasts, the more our costs will get deeply ingrained," Maersk stated, quoting CEO Vincent Clerc from "a recent online event with customers."

"We don't know yet exactly how much of these costs we will recover and for how long. The higher rates we are seeing right now are of a temporary nature," Clerc added.

Maersk anticipates missing positions or having ships that are not the usual size for their routes, which will diminish the company's capacity to meet current demand.