Hapag-Lloyd CEO expects Red Sea crisis to be resolved by 2024’s end

(MENAFN) Rolf Happen Janssen, the CEO of Hapag-Lloyd, a prominent German shipping company, expressed optimism on Wednesday regarding the resolution of the Red Sea crisis, stating that the company still expects the situation to normalize before the conclusion of the current year. Happen Janssen conveyed, "I don’t know for sure, but we expect the matter to pass during the current year, and for us to return to something resembling normal conditions."

Hapag-Lloyd, ranked as the fifth largest container shipping company globally, has been significantly impacted by the attacks launched by the Yemeni Houthi group on commercial vessels operating in the Red Sea region. These attacks have affected not only Hapag-Lloyd but also rival companies, compelling them to undertake longer and more costly voyages around the African continent to bypass the affected area.

Recent developments in the region include the interception and destruction of three drones launched by the Houthis over the Red Sea by the US Army, as announced by the US Central Command (Centcom) a few days ago. According to Centcom, coalition aircraft successfully engaged the drones, with no reported casualties or damage to US, coalition, or commercial vessels.

The ongoing crisis in the Red Sea has posed significant challenges for shipping companies like Hapag-Lloyd, necessitating strategic adaptations to navigate through disrupted routes and heightened security risks. However, Happen Janssen's optimism suggests a belief that the situation will eventually be resolved, potentially allowing for a return to more stable and predictable shipping operations in the region.



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