Maersk says no return to Red Sea anytime soon

Shipping giant Maersk says it does not foresee being able to return to plying the Red Sea anytime soon, with the route still threatened by Yemen’s Houthi rebels.

Regional president for Maersk North America Charles van der Steene tells CNBC the firm is advising customers that it may need to continue using a longer route around the Cape of Good Hope into the 3rd fiscal quarter of the year.

“Customers will need to make sure they have the longer overall transit time built into their supply chain,” he says.

In a meeting with the head of cargo behemoth MSC, the head of the Suez Canal Authority Osama Rabie says it will start coordinating with clients to find ways to reduce the effects of the Red Sea crisis on trade.

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