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Maersk states effect from Red Sea attacks continues to heighten

The negative impact on maritime shipping and worldwide supply chains from attacks in the Red Sea continues to magnify as traffic is rerouted away from the Suez Canal, Danish shipping business A.P. Moller-Maersk said on Thursday.

Attacks in the Red Sea by Iran-aligned Houthi militants have

disrupted

a route important to east-west trade, with extended rerouting of deliveries, pressing freight rates higher and causing congestion in Asian and European ports.

Maersk stated current data revealed that the number of ships crossing through the canal has actually fallen 66% since carriers began diverting their vessels around Africa. Maersk did not elaborate on the data.

These disturbances have actually caused service reconfigurations and volume shifts, straining infrastructure and resulting in port blockage, hold-ups, and lacks in capability and equipment, it added.

Maersk in July

stated

disturbance to its container shipping through the Red Sea had extended beyond trade routes between the Far East and Europe to its entire international network, and warned of a cascading impact triggering congestion.

The timeline for reducing these disturbances and going back to ' typical' remains unpredictable, it stated on Thursday.

It added that demand for container shipping remains robust.

(source: Reuters)