Danish shipping company, Maersk, announced plans to introduce fresh surcharges starting from June, due to the disruption of trade along the Red Sea.
LEADERSHIP reports that Maersk and other shipping companies have diverted vessels around Africa’s Cape of Good Hope since December to avoid attacks by Iran-aligned Houthi militants in the Red Sea, with the longer voyage times pushing freight rates higher.
An armed conflict between Israel and Hamas-led Palestinian militant groups has been taking place in the Gaza Strip since 7 October 2023.
However, according to customer’s advisory to its clients updating them on the situation in the Red Sea and what to expect in the coming months, the disruption is anticipated to continue into the third quarter of 2024.
It says “As we shared in our 6 May update, the complexity of the situation in the Red Sea and the ripple effects on global supply chains have intensified in recent months.
This has caused industry-wide disruptions. We now expect that these disruptions will continue into the third quarter of 2024.
“To help with the additional costs, some surcharges will increase temporarily. You will see relevant surcharges on your latest invoices, some higher than last month. Please know that we will continue to review the surcharges regularly and keep you updated on changes. You can also find the latest information on our dedicated surcharges page on Maersk.com.”
The statement explained that the lingering security issues in the Red Sea is creating additional costs for the company in terms of fuel and additional charter rates due to the long distance.
Furthermore, the company noted that it has increased sailing speed, leased additional 125,000 containers, and organised its fleet to enhance capacity as part of efforts to deal with the present challenges.