Maersk says impact from Red Sea situation continues to intensify
Adds quote in 4th paragraph, background, detail throughout
STOCKHOLM, Sept 5 (Reuters) - The negative impact on maritime shipping and global supply chains from attacks in the Red Sea continues to intensify as traffic is rerouted away from the Suez Canal, Danish shipping company A.P. Moller-Maersk MAERSKb.CO said on Thursday.
Attacks in the Red Sea by Iran-aligned Houthi militants have disrupted a route vital to east-west trade, with prolonged rerouting of shipments, pushing freight rates higher and causing congestion in Asian and European ports.
Maersk said recent data showed that the number of ships crossing through the canal has fallen 66% since carriers began diverting their vessels around Africa. Maersk did not elaborate on the data.
"These disruptions have led to service reconfigurations and volume shifts, straining infrastructure and resulting in port congestion, delays, and shortages in capacity and equipment," it added.
Maersk in July said disruption to its container shipping via the Red Sea had extended beyond trade routes between the Far East and Europe to its entire global network, and warned of a "cascading impact" causing congestion.
"The timeline for easing these disruptions and returning to 'normal' remains uncertain," it said on Thursday.
It added that demand for container shipping remains robust.
Reporting by Anna Ringstrom and Stine Jacobsen, editing by Terje Solsvik; Editing by Sharon Singleton
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
