Maersk Line said today (July 17) that the Red Sea crisis has spread beyond its Asia-Europe network and is affecting its entire global portfolio.
The company's CEO Vincent Clerc explained that the coming months will be challenging for operators and businesses as the situation in the Red Sea continues until the third quarter of 2024.
A week ago, the Danish shipping company suffered another Houthi attack when the US-flagged Maersk Sentosa escaped destruction after being fired at by missiles.
The detour of ships around the Cape of Good Hope is difficult for carriers and shippers, Clerc said. Two to three additional ships are now needed for each service network. This has tightened the supply of tonnage, causing charter rates to soar.
Clerc noted: "Today, all the ships that can sail and all the ships that were not well used in other parts of the world before were redeployed to try to plug the loopholes. It alleviates part of the problem, but it is far from solving all the problems for the entire industry, including Maersk. In the next month, we will lose some positions or the size of the ships will be very different from what we usually have, which also means that our ability to meet all needs will decrease."
Maersk's statement said that the current situation in the Red Sea has a greater impact on Asian exports than on Asian imports.
Maersk explained: "This is mainly because Asian countries are the main exporters in the world, and China is the largest exporter to many Asian countries. The Far East and European routes through the Suez Canal are directly affected, and the disruption of the Red Sea affects most trade routes. However, the disruption has extended from the Far East routes to the entire ocean network.
"Take the Oceania network as an example. The Oceania shipping network is affected by the congestion of Southeast Asian hubs, because these ports are crucial for connecting Oceania's cargo to Maersk's global network. This is due to the limited capacity caused by equipment shortages and disruptions in the Red Sea, which affects alternative routes and transshipment hubs. Delays at Southeast Asian ports could cause disruptions to Australian ports as vessels bunch up on arrival, causing longer wait times and other delays.
Congestion and disruptions have extended from hubs to Northeast Asian and Greater China ports, causing delays. Maersk advises that Oceania exporters should factor in extra lead times as part of their supply chain planning during this period.
