Maersk: The effects of the Houthi attacks on cargo ships will extend into the third quarter of this year

Maersk Shipping Company confirmed on Wednesday that the impact of the Houthi attacks in the Red Sea and Gulf of Aden on supply chains will extend into the third quarter of this year, noting that the coming months will be difficult for transport companies.

The company said in a statement, “The repercussions of the situation in the Red Sea continue to worsen around the world, creating challenges for supply chains and our customers. It has caused industry-wide disruptions since December 2023, forcing ships to temporarily divert and take longer routes around the Cape.” Good Hope and causing unprecedented challenges to global supply chains.”

Maersk CEO Vincent Clerc explained that the coming months will be difficult for transport companies and companies alike, as the situation in the Red Sea extends into the third quarter of 2024.

Speaking during a recent online event with clients, Vincent Clerc spoke about the challenges that ongoing attacks on ships in the Red Sea/Gulf of Aden have posed to logistics and supply chains. Meanwhile, Maersk ships continue to divert around Africa via the Cape of Good Hope. He acknowledged that the situation is difficult for both transport companies and companies that need to transport their goods.

“We face these challenges together, and we have to make sure we stay close to them as we deal with the new set of circumstances that continue to present themselves,” Vincent said. “These disruptions, and the impact they are having on your business, are not something that I or any of my colleagues at Maersk are dealing with.” "We know it's hard. We know it's hard for you. We know it puts you under a lot of pressure."

Vincent Clerc spoke of the "tremendous impacts" of the Red Sea situation since it began in December 2023. He said extending courses to travel on the longer route around Africa would require two to three ships, depending on the trade involved. The availability of additional capacity was initially low, and throughout the industry, the ability of carriers to bring on additional payload was limited. At the same time, demand for container transport remains strong.”

He added: “Today, all sea-capable ships and all ships that were underutilized have been redeployed to other parts of the world in an attempt to fill the gaps. This has alleviated part of the problem, but far from all the problems throughout the industry, including "Next month, Maersk will face lost jobs or ships sailing in significantly different sizes than we would normally have on this line, which also means a reduced capacity to handle all the demand there is."

The company explained in its statement that Asian exports are more affected than Asian imports by the current situation in the Red Sea. This is primarily because Asian countries are major global exporters, and China is the largest exporter for many Asian countries.

“The routes between the Far East and Europe via the Suez Canal have been directly affected, with disruptions in the Red Sea affecting most trade routes. However, the disruptions have extended beyond the Far East and Europe routes to the entire ocean network,” Maersk said.

She pointed out that there are multiple reasons behind the cascading effects in these areas, related to congestion across the main ports, causing delays and bottlenecks in the entire system, as well as the reorganization of ocean networks with the transfer of ships to different areas to better meet the demand for energy, which led to this. To a widespread global impact affecting areas not originally directly affected by the Red Sea disturbance.

Maersk stressed that it is working to reduce the disruptions that its customers may be exposed to through major investments as well as through ongoing operational adjustments. This includes securing additional containers as well as exploring further capacity improvements.

Since last November, the Iranian-backed Houthi militia has been launching attacks with drones and missiles on cargo ships while they were sailing in the Red Sea, Bab al-Mandab, and the Gulf of Aden off the coast of Yemen. It says that it is supporting Gaza, which has been subjected to a devastating Israeli war since the seventh of last October, and these attacks have negatively affected... Shipping movement, trade and global supply chains, as many companies resorted to longer routes for safety.

As a result, the United States formed a military coalition under its leadership, and since the beginning of this year, along with Britain, it has been carrying out strikes that it says target the Houthis’ military capabilities, in response to their attacks against cargo ships. The Houthis responded with attacks on American and British naval ships, considering them “military targets.”