The boss of shipping giant Maersk has warned that the disruption to shipping travelling through the Red Sea could last for months, raising fears that prices could rise on shop shelves.
The Danish shipping giant’s chief executive Vincent Clerc said the closure of the vital shipping route to most vessels after a series of attacks was “brutal and dramatic”.
Ships have been travelling around the southern tip of Africa rather than using the vital trade route linking the Arabian Sea with the Mediterranean after attacks on vessels by Houthi rebels from Yemen.
Mr Clerc said there were “no winners” as vessels are forced to take a lengthy and costly detour.
He told the Financial Times: “It’s unclear to us if we are talking about re-establishing safe passage into [the] Red Sea in a matter of days, weeks or months . . . It could potentially have quite significant consequences on global growth.”
His comments come as data from the Kiel Institute showed that the number of containers shipped in the Red Sea fell by more than half in December.
Meanwhile, the boss of Tesco has warned that the disruption to shipping in the Red Sea could send prices higher.
Ken Murphy said: “If they do have to go the whole way around Africa to get to Europe, it extends shipping times, it constrains shipping space and it drives up shipping costs.
“So that could drive inflation on some items, but we just don’t know.”
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2024-01-11 10:03:00Z
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