Red Sea disruptions to continue into Q3, Maersk CEO says
Adds detail on expectations in paragraph 5
COPENHAGEN, July 1 (Reuters) -The coming months will be challenging for carriers and businesses, as disruptions to container shipping via the Red Sea continue into the third quarter, Danish shipping company Maersk MAERSKb.CO 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 longer that this lasts, the more our costs will get deeply ingrained," Maersk said in a statement, citing comments made by CEO Vincent Clerc at "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 said.
Maersk expects to have missing positions or ships that differ in size from what the company would normally have on a given string, it said, adding that this would reduce the company's ability to carry the current demand.
Reporting by Louise Breusch Rasmussen; Editing by Leslie Adler and Jonathan Oatis
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.
