MAERSK CEO Vincent Clerc expected global shipping disruption resulting from attacks on Red Sea vessels will likely persist for several months, reports Reuters.
In response to these attacks by Iranian-backed Houthi forces, maersk and other major shipping lines have directed hundreds of commercial vessels to avoid the Red Sea, opting for the longer route around Africa.
'So for us this will mean longer transit times and probably disruptions of the supply chain for a few months at least, hopefully shorter, but it could also be longer because it's so unpredictable how this situation is actually developing,' said Mr Clerc.
Freight rates have doubled since early December, while insurance sources say war risk insurance premiums for shipments through the Red Sea are also rising.
Banking executives have stated they were worried the crisis might create inflationary pressures that could ultimately delay or reverse interest rate cuts.
'This is extremely disruptive because you have close to 20 per cent of global trade that transits through the Bab al-Mandab Strait. It's one of the most important arteries of global trade and global supply chains, and it's clogged up right now,' said Mr Clerc.
SeaNews Turkey
In response to these attacks by Iranian-backed Houthi forces, maersk and other major shipping lines have directed hundreds of commercial vessels to avoid the Red Sea, opting for the longer route around Africa.
'So for us this will mean longer transit times and probably disruptions of the supply chain for a few months at least, hopefully shorter, but it could also be longer because it's so unpredictable how this situation is actually developing,' said Mr Clerc.
Freight rates have doubled since early December, while insurance sources say war risk insurance premiums for shipments through the Red Sea are also rising.
Banking executives have stated they were worried the crisis might create inflationary pressures that could ultimately delay or reverse interest rate cuts.
'This is extremely disruptive because you have close to 20 per cent of global trade that transits through the Bab al-Mandab Strait. It's one of the most important arteries of global trade and global supply chains, and it's clogged up right now,' said Mr Clerc.
SeaNews Turkey
