Maersk expects major cut in cargo capacity due to Red Sea crisis

(MENAFN) Maersk Shipping Group has issued a concerning forecast, stating that the ongoing container shipping crisis in the Red Sea is poised to diminish the sector's capacity between the Far East and Europe by an estimated 15 to 20 percent in the second quarter of this year. This stark projection underscores the severity of the situation, which continues to escalate and disrupt maritime transport operations.

The group attributes this anticipated capacity reduction to the escalating turmoil in the Red Sea, which has instilled unrest within the maritime transport sector. Since December of last year, Maersk and other shipping companies have resorted to rerouting vessels around the Cape of Good Hope in Africa to circumvent attacks by Houthi rebels in the Red Sea. However, the prolonged journey times associated with these detours have resulted in increased shipping costs and higher prices for consumers.

Maersk issued a recent warning to its customers, highlighting the expanding danger zone and the heightened frequency of attacks extending further out to sea. Consequently, vessels have been compelled to extend their routes even further, incurring additional time and expenses to deliver goods to their intended destinations. This exacerbates the challenges faced by the shipping industry, amplifying the strain on global supply chains and logistics networks.

As a leading player in global trade, Maersk serves as a barometer for the health of the international shipping sector. Last week, the Danish company warned that disruptions caused by the Red Sea attacks are expected to persist until at least the end of the year, prolonging the impact on shipping operations and exacerbating supply chain disruptions. Amidst these challenges, stakeholders across the maritime industry are compelled to navigate complex geopolitical tensions and adapt strategies to mitigate the adverse effects on global trade. 

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