Maersk: Red Sea impact reduces Q2 capacity by 15%-20%

07 May 2024 CW Team

Maersk stated that the disruption to container shipping traffic in the Red Sea was worsening and was expected to decrease the industry's capacity between the Far East and Europe by approximately 15%-20% in the second quarter. Last week, the company, seen as a gauge of world trade, had mentioned that shipping disruptions caused by attacks on vessels in the Red Sea by Houthi militants are anticipated to persist at least until the year's end.

According to Maersk's advisory to customers, the risk zone had expanded, and attacks were extending further offshore. The company mentioned that this circumstance had compelled their vessels to extend their journey, resulting in additional time and costs to deliver cargo temporarily.

Maersk further explained that the repercussions of the situation included bottlenecks, vessel bunching, where multiple ships arrived at port simultaneously, and shortages of equipment and capacity. The company stated they were endeavouring to enhance reliability by sailing faster and increasing capacity. They also disclosed that they had leased over 125,000 additional containers thus far.

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