Maersk: All ships have been redeployed
Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, specializing in markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~
Maersk said on July 17, local time, that the disruption to its container shipping business due to the situation in the Red Sea has expanded, and its entire shipping network is currently affected.
Maersk CEO Ke Wensheng said that all the company's sailing ships and all previously underutilized ships have now been redeployed to try to fill the capacity gap.
But in Ke Wensheng’s view,Demand is still unlikely to be met in the coming months.
Maersk said the knock-on effects of these disruptions extend beyond the main affected routes. Tensions in the Red Sea have led to congestion on alternative routes and transshipment hubs necessary for trade in the Far East, Central and Western Asia and Europe.
Previously, when talking about the "huge impact" of the Red Sea situation on the global supply chain, he said: "As the Red Sea situation continues into the third quarter of 2024, the next few months will be a challenge for the entire industry."
Ke Wensheng said that depending on different trade conditions, additional shipping capacity will be needed to bypass Africa. However, additional capacity is currently limited, and carriers’ ability to introduce additional capacity is also limited. At the same time, market demand for container shipping remains strong.
In an online event with customers, Ke Wensheng said that currently Maersk ships continue to circumnavigate Africa through the Cape of Good Hope in South Africa, and the situation is difficult for both carriers and companies that need to transport goods.
Additionally, another challenge is increased costs. Ke Wensheng believes that due to extended transportation time and tight container turnover, carriers have to sign long-term charter contracts with higher rents. Maersk incurred these costs despite knowing that many of the costs would remain after the Red Sea crisis was over.
In this regard, Ke Wensheng said: "The longer this situation lasts, the higher our costs will be. We don't know how much these costs can be recovered and how long it will take."
"The high shipping rates we are currently seeing are only temporary, as new shipping capacity is gradually put into the market and routes return to normal, freight rates will return to market levels. "
