DHL CEO says Red Sea disruption could lead to shipping container shortage
Retired U.S. Army Blackhawk helicopter pilot Lt. Col. Darin Gaub says the only hope to mitigate conflict in the Middle East is for Israel to uphold its defense.
DHL chief executive Tobias Meyer on Wednesday warned the ongoing disruptions to global trade caused by Houthi rebel attacks in the Red Sea could lead to shipping container shortages in Asia in the coming weeks.
Meyer said during a panel discussion in Davos that such a shortage could occur because a sufficient amount of containers may not be transported back to Asia.
Tobias Meyer, chief executive officer of DHL Group, speaks during an interview in Hong Kong on Nov. 14, 2023. (Paul Yeung/Bloomberg via / Getty Images)
«We have to keep an eye on that,» he said, while adding that the current disruptions cannot be compared to the supply chain difficulties from three to four years ago at the onset of the COVID-19 pandemic.
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In the latest update on the Red Sea situation on DHL's website from last week, the company warned «shipping costs are increasing in significant trade routes for the foreseeable future» as every major shipping line has suspended services in the Red Sea and is sending their vessels around Africa's Cape of Good Hope, adding roughly two weeks to shipping times.
The headquarters of DHL, the world's largest global delivery company, on March 14, 2006, in Bonn, Germany. (Ralph Orlowski / Getty Images)
Deutsche Post AG
"[E]quipment issues are beginning to emerge and are expected to worsen," DHL warns on its website. «This is due to vessels not returning to Asia on time, resulting in a shortage of available equipment for future shipments.»
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