Shipping giant Maersk says Red Sea vessel diversions could extend into second half of 2024
Publishing timestamp: 2024-02-14 07:56:12
Summary
Maersk, the global shipping and logistics company, is advising customers to prepare for a prolonged Red Sea crisis that could last into the second half of the year. The company has suspended vessel transits in the Red Sea and Gulf of Aden due to attacks by Houthi rebels. They are advising customers to expect longer transit routes and delays, and to be agile in their supply chain logistics strategies. The delays are impacting trade consistency and supply chains. Maersk has added extra vessel capacity to its schedule to keep the flow of trade moving, but there are concerns about delivery timing and overall costs. Shippers are looking for alternatives to cut transit time and rising costs, such as using ports in Mexico and the Pacific Northwest. The Panama Canal drought is also a concern, and Maersk is exploring a better West Coast approach to mitigate the risk of reduced throughput.
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