Maersk Forecasts Prolonged Shipping Disruptions Through Red Sea, Advises Supply Chain Adjustments

Global shipping and logistics major Maersk, has issued a warning regarding prolonged disruptions in container shipping through the Red Sea, which are expected to persist into the latter half of the year.

This situation has led to significant congestion and delays for goods bound for the United States (US), according to a report from The Economic Times.

Due to attacks on shipping by Houthi militants, major container shipping companies have opted for the longer route around Africa's Cape of Good Hope, bypassing the Red Sea and Suez Canal.

Maersk has responded by increasing vessel capacity by approximately 6 per cent to offset delays incurred by the longer route.

In light of these developments, Maersk has advised its customers, including retail giants like Walmart and Nike, to anticipate higher supply chain costs. The longer sailing times have already resulted in increased freight rates.

The delays have also impacted vessels bound for the US east coast, prompting Maersk to suggest alternative ports in Mexico, the Pacific Northwest, and Los Angeles for goods destined for this region.

Additionally, heavy congestion in Oakland, California, has caused further delays for vessels returning to Asia to collect goods.