COPENHAGEN, DENMARK — The disruption to container shipping traffic in the Red Sea is increasing and is expected to reduce the industry’s capacity between the Far East and Europe by some 15%-20% in the second quarter, shipping group Maersk said on Monday.
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.
“The risk zone has expanded, and attacks are reaching further offshore,” Maersk said in an updated advisory to customers on Monday.
“This has forced our vessels to lengthen their journey further, resulting in additional time and costs to get your cargo to its destination for the time being,” it added.
Last week, the Danish company, considered a trade barometer, projected shipping disruptions due to Red Sea attacks to persist until year-end.
The effects included bottlenecks, vessel bunching, and shortages in equipment and capacity at ports.
“We are doing what we can to boost reliability, including sailing faster and adding capacity,” Maersk said, adding that it had so far leased more than 125,000 additional containers.
“We have added capacity, where possible, in line with our customers’ needs,” the company said.
In response to the Maersk Red Sea Disruption assessment, stakeholders across industries are closely monitoring the situation in the region. Any significant reduction in Asia-Europe shipping capacity could lead to higher freight costs and longer delivery times.
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