Attacks in the Red Sea: Container ships have been diverted around the southern tip of Africa
Disruption in the Red Sea is worsening and will reduce trade capacity from the Far East to Europe by up to a fifth this quarter, shipping giant Maersk warns.
Container ships have been diverted around the southern tip of Africa since late last year to avoid attacks by Iran-backed Houthi militants in the Red Sea.
This, in turn, has raised rates for transporting goods. UK and European consumers will be affected if those costs are passed on through price increases.
In an update yesterday, Maersk said: “The risk zone has expanded and attacks are occurring further from the coast.”
Maersk estimates that shipping industry capacity between the Far East and Europe will be reduced by 15 to 20 percent in the April-June period.