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Steel News

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Home Steel News Maersk: Red Sea crisis could last until second half of this year
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Maersk: Red Sea crisis could last until second half of this year

20 Feb 2024 15:51 reported by Lena Yang

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Maersk has recently stated that the crisis in the Red Sea could persist until the second half of this year and advises customers to prepare for this possibility. Charles van der Steene, President of Maersk North America, told the media, "Unfortunately, we now believe that the situation in the Red Sea will not change quickly, and diversions could continue into the second or even third quarter. Our advice is for customers to ensure their supply chains are adapted to longer transit times."

He noted that U.S. companies are facing three supply chain headwinds, including the Red Sea rerouting, labor negotiations at U.S. East Coast ports, and a drought in the Panama Canal. Due to the drought restricting cargo volume through the Panama Canal, Maersk recently announced plans to transport containers from the Australian region to the East Coast via rail.

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