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Maersk warns of prolonged Red Sea crisis

  • By Al Mayadeen English
  • Source: Agencies
  • 18 Feb 2024 22:43
4 Min Read

Maersk ceased operations in the region last month amid the Red Sea crisis.

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  • Maersk warns of prolonged Red Sea crisis
    The Vilnia Maersk container vessel unloads at the Jade Weserport container terminal in Wilhelmshaven, Germany on November 15, 2022. (AP)

Danish shipping company AP Moller-Maersk has advised clients to prepare for a lengthy Red Sea crisis that might last far into the second half of this year, CNBC reported.

The news outlet detailed that the world's second-largest ocean carrier has added around 6% more vessel capacity to its schedule, increasing operational expenses.

Following the Yemeni Armed Forces' targeting of Israeli and "Israel"-bound ships in the Red Sea and the Suez Canal, major shipping corporations have begun sending hundreds of their boats on lengthier and more expensive routes around southern Africa's Cape of Good Hope.

Maersk ceased operations in the region last month after the Yemeni Armed Forces (YAF) targeted two of its ships for being en route to the Israeli occupation entity and after its crew refused to respond to warning calls from the Yemeni Naval Forces.

The regional president for Maersk North America, Charles van der Steene, told CNBC that the company does not see any change "anytime soon" in the situation.

“We’re advising them the longer transit routes could last through Q2 and potentially Q3. Customers will need to make sure they have the longer overall transit time built into their supply chain.” 

The Suez Canal, the quickest route from Asia to Europe, accounts for around 15% of global commercial shipping. Major freight businesses are now experiencing rising expenses and soaring insurance rates as a result of having to redirect ships.

According to van der Steen, in addition to delivery, shippers must now compare the cost of their supply chain to its real expenses.

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“If that fundamentally shifts and changes, it could have a pretty significant effect on their overall costs.” 

According to the Kiel Institute's most recent assessment, operations on the vessels included in YAF's list of targets in the Red Sea reduced global commerce by 1.3% between November and December 2023.

Aggressions on Yemen were launched in an alleged attempt to deter the Yemeni Armed Forces from carrying out their operations against Israeli and "Israel"-bound ships in response to the occupation entity's genocide in Gaza.

Yemeni Armed Forces (YAF) Spokesperson, Brigadier General Yahya Saree, has reiterated that operations would continue in solidarity with the people of Palestine and in response to the US-British aggression against Yemen. 

Saree reiterated that Yemen's military forces will not hesitate to carry out more operations in response to the "Zionist crimes against people in the Gaza Strip."

European military operation in Red Sea will last one year: EU official

A senior EU official announced on Friday that the EU mission aimed at controlling shipping in the Red Sea, scheduled to start on February 19, is planned to last for a year, with the possibility of adjustments to the timeline if necessary. 

"It is designed to last for a year. However, if necessary, we can certainly reevaluate," the source told reporters in Brussels.

On February 12, the EU formally announced the launch of Operation ASPIDES, aimed at controlling shipping in the Red Sea due to continuous operations on Israeli-linked vessels by the Yemeni resistance. EU foreign policy chief Josep Borrell confirmed that the mission would commence on February 19.

Borrell said on January 31 that the European Union aimed to establish and launch the maritime mission in the Red Sea no later than February 19, claiming that it would be "defensive" and no operations would be carried out on land. The EU mission, dubbed ASPIDES, allegedly aims to focus solely on protecting merchant ships by intercepting Yemeni rockets. 

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  • Yemeni Armed Forces
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