Shipping giant Maersk says Red Sea diversions could stretch into second half of 2024
foxbusiness.comRetired 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.
Denmark-based shipping behemoth Maersk is warning customers that the crisis in the Red Sea could continue into the second half of the year, a top executive from the firm said Wednesday.
«Unfortunately, we don’t see any change in the Red Sea happening anytime soon,» Charles van der Steene, regional president for Maersk North America, told CNBC in an interview. «We’re advising them the longer transit routes could last through Q2 and potentially Q3. Customers will need to make sure they have the longer overall transit time built into their supply chain.»
A Maersk container ship heads toward the Red Sea after passing through the Suez Canal in Suez, Egypt. (Kristian Helgesen/Bloomberg via Getty Images / Getty Images)
Houthi terrorists based in Yemen have been attacking commercial vessels in the Red Sea since November in retaliation for Israel’s assault on the Hamas-ruled Gaza Strip. The attacks have caused major trade disruptions, with many companies pausing or rerouting shipments around the Cape of Good Hope, adding costs and delays.
GLOBAL SHIPPING RATES SKYROCKET AS RED SEA CRISIS DEEPENS
Maersk first paused its shipping in the Red Sea and the Gulf of Aden in December, but briefly resumed operations in the area after the Pentagon announced the formation of an international mission, Operation Prosperity Guardian, to counter the attacks by the Houthis.
A Houthi fighter stands on the Galaxy Leader cargo ship in the Red Sea in this photo released Nov. 20, 2023. (Houthi Military Media/Handout via Reuters / Reuters Photos)
Following an attack on another of its
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