Maersk, a Danish container shipping company, ceased operations on Red Sea routes on December 15, 2023. The company has published a forecast indicating that it is unlikely to return to these routes before the end of 2024. The report cites an expansion of the dangerous area for shipping and attacks occurring further from the coast as reasons for this decision. Ships are being forced to take longer detours when delivering goods between Asia and Europe.
Fuel costs have increased by 40% from December figures, according to Maersk’s estimates. The increased delivery times have also led the company to rent an additional 125 thousand containers. Maersk is currently the second largest company in the world in terms of container transportation volumes, and the German company Hapag Lloyd has also stated that it does not intend to return to the Red Sea at the moment.
These developments have significant implications for the shipping industry, with major players like Maersk and Hapag Lloyd making decisions to avoid the Red Sea routes due to security concerns and increased costs. This shift in operations reflects the evolving challenges faced by companies in the maritime sector, highlighting the need for adaptability and strategic decision-making in response to changing circumstances.
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