Maersk warns: Red Sea crisis may continue into the second half! There will be severe congestion and delays for US cargo...

With the Red Sea disruption likely to continue, Maersk has increased capacity by about 6% to offset the delays...

Shipping giant Maersk has warned that disruptions to container traffic through the Red Sea will continue into the second half of the year, with severe congestion and delays for shipments to the United States

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Following the Houthi attacks on shipping, major container shipping companies have switched from the Red Sea and Suez Canal to the longer route around the Horn of Good Hope in Africa.

"Prepare for the situation in the Red Sea to continue into the second half of the year and increase transit times in supply chain planning," Maersk North America head Charles van der Steene said in a statement on Tuesday.

Maersk said it had increased capacity by about 6 per cent to offset the delays due to the longer route around Southern Africa.

The Copenhagen-based company also told customers, which include retail giants such as Walmart and Nike, to prepare for higher supply chain costs, with longer sailing times already pushing up freight rates. Many clients build unit costs into their budgets, he says, and if this volatility causes things to change radically, it could have a significant impact on overall costs.

According to a statement released by Maersk on Tuesday, the global air cargo market saw a 5 percent surge in demand in January compared to 2023, with a corresponding 12 percent increase in capacity due to transport delays.

Maersk said longer sailing times across Africa also meant significant delays for ships heading to the U.S. East Coast, and advised customers to consider other ports in Mexico, the Pacific Northwest and Los Angeles for East Coast-bound shipments.

To reduce the long transit times caused by cargo being rerouted around the Cape of Good Hope in Africa, Maersk offers air and sea transport services from Asia to Europe via Los Angeles, providing customers with a solution that minimises supply chain delays.

Amid rising tensions, other shipping giants continued to divert from the Red Sea, including Germany's Hapag-Lloyd, which reiterated its decision to continue avoiding the Suez Canal and the Red Sea. Maersk also noted that heavy congestion in Oakland, California, was also causing delays for container ships returning to Asia for pickup.