The world’s largest shipping group, Mediterranean Shipping Company (MSC), has now joined Danish shipping giant Maersk and German transport company Hapag-Lloyd in suspending all journeys through the Red Sea. The decisions having been made following attacks by Iran-backed Houthi rebels in Yemen.
Following the announcement from Maersk, Marco Forgione, Director General at the Institute of Export & International Trade, commented:
“The news that Maersk is pausing all Red Sea shipping journeys could not come at a more difficult time for global supply chains. Attacks on ships in and around Suez, which have led to this move, come at the same time as severe shipping delays through the Panama Canal because of drought. All eyes now will be on other shipping firms to see if they follow suit.
“Around 5% of all global trade relies on the Panama Canal, and 12% on Suez. They are fundamental to the flow of international trade. Without them operating smoothly, the domino effect of damage and disruption to supply chains caused by ships delayed and in the wrong places will be substantial.
“This impacts every link in the supply chain, from producer right down to end user, and will only increase the chances of critical products not making their destinations in time for Christmas.”
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