Maersk says winter weather, Red Sea disruption cause congestion

Weather-related disruption at ports in northern Europe and the diversion of vessels away from the Red Sea are causing congestion at container terminals, A.P. Moller-Maersk, opens new tab said in an update to customers on Thursday, January 18.

Maersk and other shipping groups have diverted vessels away from the Red Sea and the Gulf of Aden following attacks by Yemen’s Houthis, sending them on a long journey around Africa rather than through the Suez Canal shortcut.

In northern Europe, winter storms and the effects of the recent holiday season have led to terminal closures and navigation stoppages, the company said.

“Winter weather conditions as well as the Red Sea contingencies are expected to affect operations across Europe and Hub terminals,” Maersk said.

“This is leading to increased yard density across terminals and customers are kindly asked to pick up their units as soon as possible after discharge to support fluidity,” it said.

Maersk CEO Vincent Clerc on Wednesday (Jan 17) said the disruption to global shipping caused by the attacks on vessels in the Red Sea will probably last at least a few months.

“While we hope for a sustainable resolution in the near-future and do all we can to contribute towards it, we do encourage customers to prepare for complications in the area to persist and for there to be significant disruption to the global network,” the company said in its update on Thursday.

Maersk said it also offers customers the option to shift some cargo from vessels to air freight at ports in Oman and the United Arab Emirates to fly goods to final destinations in Europe or the United States.

Container shipping rates for key global trade routes have soared, with U.S. and UK air strikes on Yemen stirring fears of a prolonged disruption to global trade traffic in the Red Sea, one of the world’s busiest routes.

Source: Reuters

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