The negative impact on maritime shipping and global supply chains due to attacks in the Red Sea has escalated, leading to a rerouting of traffic away from the Suez Canal, according to Danish shipping company A.P. Moller-Maersk. Attacks by Iran-aligned Houthi militants in the Red Sea have disrupted a crucial trade route, resulting in the prolonged rerouting of shipments. This has caused freight rates to increase and congestion in ports in Asia and Europe.
Recent data from Maersk indicates that the number of ships passing through the Suez Canal has dropped by 66% since carriers began diverting their vessels around Africa. The disruptions have necessitated service reconfigurations, volume shifts, and strained infrastructure, leading to port congestion, delays, and shortages in capacity and equipment. Maersk warned of a “cascading impact” affecting its entire global network, not just trade routes between the Far East and Europe.
The timeline for resolving these disruptions and returning to normal operations remains uncertain, as demand for container shipping continues to be strong. Maersk highlighted the challenges posed by the ongoing disruptions and emphasized the need for proactive measures to address the congestion and delays in the shipping industry. The company remains committed to navigating through these challenges and ensuring the smooth operation of its global network.
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