Tensions in the Red Sea: Asia-Europe shipping capacity could decrease by 20%
Shipping group Maersk said on May 6 that disruptions to container shipping activities on the Red Sea are increasing; It is predicted that it could reduce shipping capacity by up to 20% between the Far East and Europe in the second quarter of 2024.
Maersk said the risk area has expanded, forcing ships to extend their journeys.
Since December 2023, Maersk and other shipping lines have had to redirect ships around Africa's Cape of Good Hope to avoid attacks by Houthi forces in the Red Sea. This makes shipping time longer, pushing up freight rates.
In a notice sent to customers on May 6, Maersk said the risk area has expanded, forcing ships to take longer journeys, leading to more time and costs to get goods to their destination. . Due to having to avoid the Suez Canal, Maersk estimates that container shipping capacity between the Far East and Northern Europe, as well as the Mediterranean, will decrease by 15-20% in the second quarter of 2024.
Trips around Africa have caused a number of knock-on effects, such as congestion, shortages of equipment and processing capacity,...
Maersk said it is doing everything possible to improve transport quality. To date, Maersk has rented more than 125,000 containers.
A Maersk spokesman said the situation in the Red Sea remained complicated. The Danish shipping group said last week that shipping disruptions were expected to last at least until the end of the year. Meanwhile, German shipping company Hapag-Lloyd seems more optimistic, believing that this situation can be overcome before the end of 2024./.
Source: Vietnam Financial Times Newspaper
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