AMKBY - Red Sea Disruptions To Cut Shipping Capacity By 15-20% In Q2 Says Maersk | Benzinga
A. P. Moller Maersk (OTC:AMKBY), the world’s largest container shipping company, has announced that the ongoing disruptions in the Red Sea will significantly impact the industry’s capacity in the second quarter.
What Happened: The disruptions, caused by attacks from Iran-aligned Houthi militants, are expected to reduce the shipping industry’s capacity between the Far East and Europe by 15%-20% in the second quarter, reported Reuters.
“The risk zone has expanded, and attacks are reaching further offshore. This has forced our vessels to lengthen their journey further, resulting in additional time and costs to get your cargo to its destination for the time being,” Maersk said in an updated advisory to customers on Monday.
Maersk and other shipping companies have been rerouting vessels around Africa’s Cape of Good Hope since December ...