Disruptions in international trade due to Houthi attacks in the Red Sea may persist until the end of the year – Maersk forecast

Disruptions in international trade due to the tense situation with shipping in the Red Sea may persist until the end of this year, said the head of the Danish shipping company Moller-Maersk Vincent Klerk.

The ruling Ansar Allah (Houthis) movement in northern Yemen, which controls much of Yemen’s Red Sea coastline, earlier declared its support for Palestine and its intention to attack any Israeli-affiliated ships, calling on other countries to withdraw their crews from them and stay away from them at sea. At the same time, they said they were not interfering with freedom of navigation in the region and would not touch other countries’ vessels. Amid the attacks in the Red Sea, some companies have decided to suspend transportation through it.

In an interview with the Financial Times, the Clerk emphasized that disruptions in international trade due to the situation in the Red Sea “will not be short-term, will continue at least in the second half of the year.”

“We are not optimistic about the likelihood that we will be sailing through Suez any time soon,” he added.

According to the Maersk chief, there are no signs of easing tensions in the Red Sea yet, with the route bypassing the Cape of Good Hope taking longer and costing companies more than the route through the Suez Canal. This rise in the cost of shipping by sea could lead to inflationary pressures that would be difficult to overcome, according to Clerc.

Maersk is the second largest shipping company in the world, according to a ranking by shipping analysis portal Alphaliner. The company was founded in 1904 in Svennborg, Denmark. Currently, it operates in 130 countries and employs about 100 thousand people.

Tags: Maersk