The shipping group Maersk said on May 6 that disruptions in container shipping activities on the Red Sea are increasing and predicted to reduce shipping capacity between the ASIA and EUROPE by up to 20% in the second quarter of 2024.
Since December 2023, Maersk and other shipping lines have had to redirect ships around South Africa's Cape of Good Hope to avoid attacks by Houthi forces in the Red Sea. This makes shipping time longer and increase 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 deliver 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 expected the shipping disruptions would last at least until the end of the year.