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A.P. Moller-Maersk said in an update to clients on Thursday that weather disruptions in northern European ports diverting ships away from… The Red Sea They caused congestion in the container receiving berths in the ports.
Maersk and other shipping companies have diverted ships away from the Red Sea and Gulf of Aden to the Cape of Good Hope around Africa instead of passing through Suez Canal, The shortest sea route between Asia and Europe, due to attacks launched by the Houthi group in Yemen on ships in the region.
The company said that winter storms and the impact of the recent holiday season in northern Europe caused the closure of some ports and the suspension of navigation.
“Winter weather conditions as well as emergency events in the Red Sea are expected to impact operations across Europe and major ports,” Maersk added.
She continued, “These conditions resulted in high density on container berths at the ports, and we call on customers to receive their shipments as soon as possible after unloading to support traffic fluidity.”
Disruption of global shipping traffic
Maersk’s CEO said yesterday, Wednesday, that “the disruption to global shipping traffic due to attacks on ships in the Red Sea will likely continue for at least a few months.”
The company stated in an update published today, Thursday, “While we hope for a sustainable solution in the near future, and are doing everything we can to contribute to reaching it, we urge customers to prepare for continued exposure to complications in the region and the presence of major disruptions in the global network.”
Maersk said it offered customers the option of converting some shipments from ships to air freight at ports in the Sultanate of Oman and the UAE to transport goods by air to their destinations in Europe or the United States.
Maersk also said that all available information indicates that security risks in the Red Sea remain significantly high.
Growth in demand for air freight
Logistics companies say that there is an increase in the number of manufacturing companies seeking to transport their products by air in the next few weeks, after being forced by attacks. The Houthis Cargo ships in the Red Sea must search for alternative routes, in a shift that may benefit the air freight sector, which is suffering from weak demand following the (Covid-19) pandemic and excess capacity.
Air freight prices remained relatively stable, due to the shipping crisis coinciding with a seasonal lull in demand, but data from the reservation and payment platform for international shipping, “Fretos,” showed an increase in shipping prices from China to Europe by about 91% on a weekly basis last Sunday.
Air freight is expensive compared to its sea counterpart, and is not competitive for large goods with a low profit margin.
