 "Maersk")
The latest threats of escalation of violence in the Red Sea amid the ongoing Israel-Hamas conflict are likely to hit the shipping industry’s capacity by 15-20 per cent, according to Danish shipper Maersk.
"The knock-on effects of the situation have included bottlenecks and vessel bunching, as well as delays and equipment and capacity shortages. We estimate an industry wide capacity loss of 15-20% on the Far East to North Europe and Mediterranean market during Q2. We are doing what we can to boost reliability, including sailing faster and adding capacity," the international shipping giant said in an advisory on Monday.
It added, "The complexity of the situation in the Red Sea has intensified over the last few months. To safeguard our crew, vessels, and your cargo, we are rerouting around the Cape of Good Hope for the foreseeable future. However, the risk zone has expanded, and attacks are reaching further offshore. This has forced our vessels to lengthen their journey further, resulting in additional time and costs to get your cargo to its destination for the time being."
According to Maersk, the effects of the situation in the Red Sea are widening and continuing to cause industry-wide disruptions.
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According to reports, the diversions and higher sailing speeds arising from the Red Sea situation have also led to burning of 13.6 million tonnes of additional fuel since mid December – equivalent to the emissions of 9 million cars over the same period.
The company has had to lease 125,000 additional containers to augment its capacity in the wake of the crisis.
"You will see relevant surcharges on your latest invoices. These are to offset the costs of the longer journeys, increased sailing speed, and additional fuel costs. For example, we are currently using 40 per cent more fuel per journey and charter rates are currently three times higher, often fixed for five years," the company’s latest advisory said.
The company has re-increased its peak season surcharge to help cover these additional costs, and will continue to review surcharges as the situation in international waters develops.
The Houthi rebel group in Yemen reportedly threatened to start trying to attack ships in the eastern Mediterranean on Monday, in addition to its continuous attacks in the Gulf of Aden.
