Maersk Warns Of Major Disruption As It Diverts Ships Away From Red Sea

Maersk is diverting all container vessels from Red Sea routes around Africa’s Cape of Good Hope for the foreseeable future, warning customers to prepare for significant disruption, while Hapag Lloyd tallied a big increase in costs of diverting ships.

Shippers across the world are switching away from the Red Sea – and so the shortest route from Asia to Europe via the Suez Canal – after Iranian-backed Houthi militants in Yemen stepped up attacks on vessels in the Gulf region to show their support for Palestinian Islamist group Hamas fighting Israel in Gaza.

The trip round Africa can add about 10 days to journey times and requires more fuel and crew-time, jacking up shipping costs.

Denmark’s Maersk (MAERSKb.CO) had said earlier this week it would pause all vessels bound for the Red Sea following an attack on one of its ships by Houthi militants, and has since begun redirecting ships around Africa.

“The situation is constantly evolving and remains highly volatile, and all available intelligence at hand confirms that the security risk continues to be at a significantly elevated level,” Maersk said in a statement on Friday.