DANISH shipping giant Maersk has warned of disruptions to container shipping through the Red Sea dragging into the second half of the year and of heavy congestion and delays for US-bound goods.
Major container shipping companies have rerouted away from the Red Sea and Suez Canal to the longer journey around Africa's Cape of Good Hope following attacks on shipping by Houthi militants.
"Be prepared for the Red Sea situation to last into the second half of the year and build longer transit times into your supply chain planning," Maersk's head of North America, Charles van der Steene, said in a statement.
The Copenhagen-based shipping line also told customers, which include retail giants such as Walmart and Nike, to prepare for higher supply chain costs. Longer sailing times have already boosted freight rates, reports Ships&Ports of Lagos.
Many customers factor a cost per unit into their budgeting, and if that fundamentally changes due to all of this volatility, it could have a big impact on overall costs, Mr van der Steene said.
Source: shippingazette