Speaking at
a recent online event with customers, Vincent Clerc talked about the challenges
the continuing attacks on ships in the Red Sea / Gulf of Aden have
created for logistics and supply chains. For the time being, Maersk ships are continuing to divert
around the Africa via the Cape of Good Hope in South Africa. He
acknowledged the situation is difficult for both carriers and businesses
needing their cargo transported.
Clerc:
"We are faced with these challenges together, and we need to make sure
that we stay close to them as we handle the new set of circumstances that
continues to unfold in front of us. These
disruptions, and the impact they are having on your business, are not something
that I, nor any colleagues at Maersk, take lightly. We know it is hard. We know
it is difficult for you. We know it puts you under a lot of pressure."
Vincent Clerc talked about the 'massive impacts' of the Red Sea situation since
it began in December 2023. Extending rotations to travel the longer route
around Africa takes two to three ships, depending on the trade in question, he
said. The availability of additional capacity was low to begin with and, across
the industry, carriers' ability to bring in extra tonnage has been limited. At
the same time, demand for container transport has remained strong.
Clerc: "Today, all ships that can sail and
all ships that were previously not well utilised in other parts of the world
have been redeployed to try to plug holes. It has alleviated part of the
problem, but far from all the problem across the industry, including for
Maersk. We are going to have in the coming month missing positions or ships
that are sailing that are significant different size from what we normally
would have on that string, which will also imply reduced ability for us to
carry all the demand that there is."
Planning for
demand peaks around Lunar New Year helped soften the impacts of the Red Sea
situation in the first quarter of 2024. However, since April and May, the
challenges have intensified.
Another major challenge for carriers has been
increased costs. With cargo
journeys lengthened and capacity squeezed, the price per container has risen
significantly. Maersk has taken on these costs knowing that many of them will
remain beyond the Red Sea situation.