Shipping giant Maersk Co. (Maersk. co.) CEO Vincent Clerc said on Wednesday that attacks on Red Sea vessels will disrupt global shipping for at least a few months. Maersk and other major shipping companies have directed hundreds of merchant ships to stay away from the Red Sea and bypass long routes in Africa to deal with attacks by the Houthis on passing ships.
“So for us, this will mean longer transit times, and the supply chain may be interrupted for at least a few months, hopefully shorter, but also longer, because the actual development of this situation is so unpredictable,” Clerc said in Davos, Switzerland.
According to maritime consulting firm Drewry (Drewry)'s World Container Index, freight rates have more than doubled since the beginning of December, and insurance sources say insurance premiums are also rising due to the risk of war shipping through the Red Sea.
Banking executives said they are concerned that the crisis may cause inflationary pressure and may eventually delay or reverse interest rate cuts.” This is extremely disruptive, as nearly 20% of global trade passes through the Mander Strait. It is one of the most important arteries in global trade and the global supply chain, and it is now blocked.”