Shipping giant Maersk said on Monday that the coming months will be challenging for shipping companies and businesses as disruptions to container shipping through the Red Sea will continue into the third quarter of this year.
Since December, Maersk and other shipping companies have diverted ships around the Cape of Good Hope in Africa to avoid attacks launched by Houthi rebels in the Red Sea. The longer route around the southern tip of Africa has caused shipping costs to soar and caused congestion at ports in Asia and Europe, threatening to disrupt global supply chains again.
"The longer this situation continues, the higher our costs will be. We don't know yet how much we can recover and how long it will take to recover the costs. The higher rates we are seeing now are only temporary." said Vincent Clerc, CEO of Maersk.