Supply chains begin 2024 impacted by Red Sea disruption
Shipping through the Red Sea is expected to continue to cause disruption to supply chains after Houthi rebels attempted to board a Maersk vessel at the weekend, just days after the company resumed using the route.
According to its latest update on vessels in the region, the Danish firm has about 30 ships scheduled to continue using the route via the Suez Canal, while other cargo ships have been diverted via the longer route around the Cape of Good Hope.
Maersk had paused all sailings in the Red Sea after the attempted attack on its Maersk Hangzhou ship at the end of last year, which was stopped by US military.
Maersk previously announced on 24 December that it intended to resume journeys in the region after assurances from a US-led coalition that military forces would protect commercial vessels from attack.
Fellow shipping firm Hapag-Lloyd has not resumed sailings in the Red Sea and Suez Canal, stating last week that the route remains “too dangerous”. Its ships are being rerouted via the Cape of Good Hope, which adds several weeks to journey times and added costs for fuel. French shipping firm CMA-CGM has resumed some journeys through the Red Sea and is looking to increase the number of vessels using the Suez Canal.
The US confirmed it shot down 12 drones and missiles that it said were fired by Houthi militants in response to Israel’s war against Hamas. It further said more than 100 drone and missile attacks have been launched targeting commercial ships.
The Institute of International Trade told the UK’s i newspaper that the situation is likely to take more than a few months to resolve, impacting supplies and prices for goods.
